Leapmotor founder, chairman, and CEO Zhu Jiangming addressed recent rumors about China FAW Group acquiring Leapmotor on the evening of November 27, stating, "Discussions regarding equity-level cooperation (with FAW) are ongoing."
Market attention on the speculation stems from Leapmotor's rapid growth trajectory. The company aims to become the top player among new energy vehicle (NEV) startups by 2025 and targets selling 1 million units by 2026.
To attract younger consumers, Leapmotor launched the Lafa5 model on November 27. Zhou Ying, vice president of Leapmotor, emphasized the company's goal to expand its market share among mainstream demographics.
**Founding Team to Retain Control** Zhu Jiangming stressed that the founding team must maintain control of Leapmotor, regardless of potential investments from FAW or other automakers. He cited Stellantis NV’s minority stake in Leapmotor as an example, noting that the founding team retains majority ownership.
Stellantis, a global automotive leader with brands like Citroën, Peugeot, and Maserati, recently formed a strategic partnership with Leapmotor. Meanwhile, FAW—one of China’s top state-owned automakers—has collaborated with Leapmotor on overseas projects, with the first model expected to enter mass production in late 2026.
Zhu hinted that equity-related developments with FAW may follow soon. Market rumors suggest FAW’s investment in Leapmotor is nearing finalization, potentially formalized by 2025, though Leapmotor has not confirmed this.
**Competing for the Youth Market** To achieve its ambitious sales target, Leapmotor is pursuing a personalized strategy with the Lafa5. Zhu noted that current vehicle designs across brands are increasingly homogenized, prompting Leapmotor to differentiate with sporty, youthful models.
Market research indicates younger buyers, especially Gen Z (born 1995–2009), prioritize individuality in their vehicle choices. Cao Li, senior vice president of Leapmotor, described the RMB 100,000–150,000 personalized car segment as a "blue ocean."
At the 2025 Guangzhou Auto Show, automakers like GWMOTOR (Great Wall Motor) showcased youth-focused models, such as the Ora 5, marketed as a "stylish and practical companion for young buyers."
To appeal to younger consumers, brands are enhancing both product design and sales incentives. The Lafa5’s limited-time price was reduced by over RMB 10,000 to RMB 92,800–116,800, while Ora 5 expanded its pre-sale benefits.
Cao Li acknowledged potential short-term profit trade-offs with the Lafa5 but emphasized Leapmotor’s broader goal of achieving a 14–15% gross margin across its product portfolio.
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