China's Leapmotor is to come to Africa

From the newsletter

Leapmotor International, a joint venture between Chinese EV maker Leapmotor and Stellantis, is set to bring its EVs to Africa starting in the fourth quarter of 2024. This was announced at the 2024 Paris Motor Show, where the company also showcased its latest model, the B10 SUV.

• Chinese EV makers have lately been making inroads in Africa, launching their range of EVs and setting up local manufacturing and assembly plants.

• In September alone, BYD opened operations in four African countries, and in October, it expanded into Madagascar, bringing its presence to over 12 African countries, and aiming to tap into Africa's growing EV demand.

• Of all the African markets, South Africa has been the most attractive, with Chinese companies like BYD, Chery, and GWM having established a presence there.

More details

• The joint venture is spearheaded by Stellantis, the automotive giant behind brands like Peugeot, Citroën, and Fiat. Stellantis holds a controlling 51% stake in this venture.

• Leapmotor, a Chinese EV maker, provides the technology and vehicles, benefiting from its in-house development capabilities.

• While still in its early stages of global expansion, Leapmotor International has ambitious plans to bring these EVs to the world. This journey began in September 2024 with a launch in nine European countries.

• Further expansion is planned for India & Asia Pacific, the Middle East & Africa, and South America.

• The joint venture aims to leverage Stellantis's existing network and Leapmotor's technology to quickly scale up.

Our take

• Leapmotor International's success in Africa will hinge on its ability to offer high-quality EVs at competitive prices to rival established players like BMW, Volvo, and Mercedes-Benz. 

• Leveraging Stellantis's extensive network and market know-how could give them a foothold in the South African EV market, which could provide a big advantage.