Stellantis-backed Zhejiang Leapmotor Technology has become the first Chinese electric vehicle (EV) manufacturer to receive investment from a state-owned enterprise amid the strong popularity of its affordable intelligent cars.
FAW Group, mainland China’s oldest carmaker, has agreed to acquire a 5 per cent stake in the Hong Kong-listed EV assembler for 3.74 billion yuan (US$534 million) by buying an additional 74.8 million shares at HK$55.29 apiece, according to a stock exchange filing by Leapmotor.
The landmark equity outlay by FAW underscores growing investor confidence in Leapmotor, in which Stellantis owns a 19 per cent stake, despite analysts’ bearish sales forecast for mainland China’s car market, the world’s largest.
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“Leapmotor aims to achieve annual deliveries of 4 million units a year in 10 years’ time,” founder and CEO Zhu Jiangming said at a media briefing on Monday in its headquarters in Hangzhou. “Leapmotor will strengthen our value through the fine-tuning of our production, while offering customers best [driving] experiences.”
Reaching that annual delivery volume would enable Leapmotor to slip into the ranks of the world’s top 10 car vendors.
The latest investment would also pave the way for FAW to jointly develop new EV models with Leapmotor, vice-president Li Tengfei said in the press briefing. That would enhance management efficiency at Leapmotor and help raise brand awareness, Li added.
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