China’s Leapmotor has commenced EV production in Europe at a Stellantis plant

A previously announced joint venture between China’s Leapmotor and Stellantis has begun building EVs in Europe ahead of local deliveries targeted this fall. Leapmotor’s entry into local production and sales overseas begins with a small EV called the T03.

Today’s latest update on the production of Leapomotor BEVs in Europe comes just over a month after the Chinese automaker confirmed the new business venture with Stellantis. The new JV, named “Leapmotor International,” will expand to sell Chinese EVs in Europe this fall, with additional markets to follow.

Stellantis ($STLA) took a $1.6 billion stake in Chinese OEM Leapmotor last fall, and we have been following the progress of both companies getting into business together, especially as the threat of tariffs on Chinese imports in Europe looms following a recent decision by the EU commission.

With the joint venture officially established, Leapmotor and Stellantis are reportedly beginning to roll the initial BEV units of one model off assembly lines in Poland.

Leapmotor Europe

Analysts at Jefferies have cited Leapmotor’s management in confirming that T03 production is underway in Europe at Stellantis’ Tychy plant in Poland. Tychy currently houses Fiat and Chrysler production but is now assembling units of Leapmotor’s T03 compact BEV before it hits local markets later this year.

Reuters reported that Stellantis chose Tychy as the new home to Leapmotor production in Europe for cost-saving reasons. Leapmotor management told Jeffries that manufacturing costs at Tychy equate to about 400-500 euros ($429-$536) per BEV, similar to build prices in China (but without potential tariffs). Either way, it’s significantly more cost-effective than the estimated price of around 1,000 euros ($1,072) per unit to build the T03s at Stellantis’ plant in Italy.

The report also states that T03 will be followed by the production of Leapmotor’s A12 SUV, which is targeted to begin in Q1 2025. The Chinese automaker has also started to prepare localized component production to support BEV builds overseas.

Leapmotor also intends to sell its new C10 SUV in Europe, but it will build those EVs in China and export them. The previously mentioned tariffs may throw a financial wrench in those plans, but Leapmotor has a potential Plan B in Stellantis through the joint venture.

Mass production of the T03 in Poland remains on schedule to begin in September ahead of first deliveries.