Leapmotor Expands Stellantis JV: Spain Dual-Factory Plan
Leapmotor and Stellantis are expanding their European manufacturing partnership with dual-factory plans in Spain — Zaragoza and Madrid — producing EVs locally by Q3 2026 to circumvent the EU’s 20.7% anti-subsidy tariff on Chinese-made imports.
Background: Leapmotor’s European Strategy
Leapmotor has been the fastest-growing NEV startup in China throughout 2026, with May deliveries reaching 81,569 units (+81% YoY) and overseas exports exceeding 20,000 units for the first time. Its 1–5月 cumulative exports topped 75,000 units, making it the top NEV startup in overseas sales. The Stellantis partnership — announced in late 2024 — gave Leapmotor access to Stellantis’s 2,000+ global dealership network, and Q1 2026 European registrations hit 23,300 units across 16 countries, a 726.5% year-over-year increase.
The Achilles’ heel has been the EU’s 20.7% countervailing duty on Chinese-made EVs, which erodes Leapmotor’s price advantage. Local production inside the EU eliminates this tariff and positions the brand as a “European-made” offering — critical for consumer perception and regulatory compliance.
Spain Dual-Factory Details
On May 14, 2026, Leapmotor and Stellantis announced plans to produce EVs at two Spanish plants. The Zaragoza facility — Stellantis’s core Spanish manufacturing base with 43 years of production history and 300,000-unit annual capacity — will begin Leapmotor production in Q3 2026, starting with the B10 compact SUV. A second site in Madrid is under negotiation, with Stellantis potentially selling its Madrid plant to the Leapmotor International JV.
Beyond Spain, the partnership is expanding into South America (leveraging Stellantis’s 30%+ market share) and Southeast Asia (Indonesia, Malaysia, Thailand). In Europe, Leapmotor already operates nearly 850 sales outlets, with Italy recording a 33.5% pure-EV market share for the brand in Q1 2026 — the highest among Chinese brands. The B10 SUV and an Opel-badged electric SUV will be the first models produced at Zaragoza, per 虎嗅 (Huxiu).
Industry Impact: JV Model as Tariff Workaround
Leapmotor’s approach — leveraging a Western partner’s manufacturing footprint inside the EU — represents the most successful example of a new playbook for Chinese EV brands facing tariff barriers. Unlike BYD’s greenfield factory strategy in Hungary or Chery’s joint venture in Spain, Leapmotor gains immediate access to an existing, certified production line and an established dealer network.
The risk is over-dependence on Stellantis. If Stellantis’s own financial position deteriorates further — the group reported declining margins in 2025 — its ability to support Leapmotor’s expansion could weaken. Per 新浪财经 (Sina Finance), Leapmotor’s Q2 2026 sales guidance of 240,000–250,000 units and potential full-year target of 1 million units depend heavily on the European ramp proceeding on schedule.
