Leapmotor, a Chinese automaker, is set to begin production of its electric vehicles (EVs) at partner Stellantis’ Tychy plant in Poland, according to sources familiar with the matter. This move positions Leapmotor as one of the first Chinese automakers to commence production in Europe. The output is expected to include the Leapmotor T03 small EV car, with production potentially starting before the end of June. This will be achieved using the semi-knocked down (SKD) technique, which involves transforming partially assembled kits into finished vehicles.
One source indicated that the selection of the Tychy plant by Stellantis was part of a joint venture agreed upon last year. The choice of Tychy is aimed at ensuring low costs for the product, which is designed to be affordable for a wide range of customers. However, both sources chose to remain anonymous as the details are not yet public. A Stellantis spokesperson declined to comment on the matter, while Leapmotor representatives were not immediately available for comment.
The Leapmotor T03 offers a range of 280 kilometers (174 miles) and is already being imported into some European markets, with prices starting at around 20,000 euros ($21,642). This model is expected to help Stellantis enhance its low-cost EV offerings and compete with other affordable EVs in the market.
Additionally, Leapmotor has stated that sales of another model, the C10 SUV, will soon begin in Germany, France, Italy, and Spain. This marks the first Leapmotor EV specifically designed for overseas markets.
Chinese automakers are increasingly introducing lower-cost EV models to Europe, leading to a competition among legacy European automakers to develop more affordable electric vehicles. Trade tensions between China and the European Union have escalated, with the EU investigating whether Chinese EV makers benefit from unfair government subsidies.
As part of its strategy to enter the Chinese market, Stellantis acquired a 21% stake in Leapmotor last year in a $1.6 billion deal. This deal also included the formation of a joint venture, granting Stellantis exclusive rights to build, export, and sell Leapmotor products outside China, a first for a legacy Western automaker. The Chinese regulator recently approved the joint venture, in which Stellantis holds a 51% stake.
While earlier reports suggested that Stellantis was considering its Mirafiori complex in Turin, Italy, as a base for Leapmotor’s European production, the decision to use the Tychy plant in Poland has been finalized. Tychy, located in the south of Poland, is an historic Fiat facility that currently manufactures several Stellantis vehicles.
