State-owned FAW Group is reportedly planning to buy a stake of about 10% in the Stellantis-backed carmaker Leapmotor.
Local media outlet Cailin Press reported on Wednesday that “FAW initially plans to make a tender offer for around 10% of Leapmotor‘s shares.”
Citing a source familiar with the matter, the report says the deal “is already circulating and progressing within relevant departments.”
Both companies have signed a Strategic Cooperation Memorandum of Understanding earlier this year, in which they planned to co-develop new energy vehicles — including hybrid and fully electric models.
According to the agreement, FAW and Leapmotor were also keen to explore equity investment to achieve deeper capital ties and full supply chain synergies.
Wednesday’s report notes that the Chinese companies “are discussing more new vehicle cooperation projects.”
The first model developed by both Leapmotor and FAW’s luxury car brand Hongqi planned to be launched overseas in the second half of next year.
Leapmotor is backed by Stellantis, which has purchased 20% of the company in 2023. As of March, the multinational group owned 51% of Leapmotor International, which is dedicated to the brand’s overseas markets.
The company’s stock is currently listed in Hong Kong. Its share price doubled year to date, outpacing several peers such as Nio, XPeng and Xiaomi.
Over the past year, the stock has surged more than 200% from its low in August 2024. The brand is not listed on Nasdaq.
Leapmotor reported on Monday its second quarter earnings results disclosing that its revenue nearly tripled year over year in the first half of 2025 to 24.25 billion yuan ($3.37 billion).
The gross margin for the same period reached 14.1% — increasing from the 1.1% reported in the first half of 2024.
The carmaker said it delivered a record 221,664 vehicles in the January—June period, more than doubling deliveries from a year ago.
In July alone, deliveries surpassed 50,000 units.
By the end of 2024, the company had stated it would be delivering 500,000 vehicles in 2025, doubling from the 250,000 units predicted in 2024 — a target that was reached, as the company ended up delivering 293,724 vehicles last year.
Amid its earnings results, Leapmotor raised its full-year 2025 sales guidance from the previous range of 500,000—600,000 to 580,000—650,000 units.
Leapmotor‘s B10 will be launched in Europe in the Munich Auto Show in September.
Through Stellantis‘ sales network, the Chinese EV maker has expanded to over 30 international markets in the past two years.
The company aims to start local production of its vehicles in Europe next year. According to a Reuters report earlier this year, Stellantis and Leapmotor were planning to make a $200 million investment in a Spanish plant.
