Leapmotor: Manufacturing in Europe to Hit Prices Even Harder

By entrusting the production of its B05 to the Stellantis factory in Zaragoza, Leapmotor is positioning itself to become even more competitive.

The best ally for Leapmotor to establish itself in Europe? A manufacturer that already possesses the factories, teams, and networks. Because to sell Chinese cars more affordably in Europe, one solution is to produce them… in Spain. Leapmotor has understood this well. After inaugurating the production of the B10 SUV in Zaragoza on October 16, the brand announces that the B05 will also be produced at the Stellantis factory. No precise timeline has yet been communicated for this second model, but the economic logic is clear.

Electric vehicles from Leapmotor imported from China normally incur 20.7% anti-dumping duties, in addition to the usual 10% customs duties. Actually producing within the European Union allows one to escape this regime applicable to cars originating from China, provided that the rules of origin customs are respected. The brand’s passport counts less than that of the vehicle. However, caution is warranted: this does not mean total elimination of taxation, nor automatic reduction of 30.7% in dealership prices.

Thank you Stellantis

This is where Stellantis acts as a tremendous accelerator. Leapmotor does not have to build its European industrial footprint on its own: it can rely on a historic site, skilled workers, suppliers, and proven processes. To this infrastructure, it adds the distribution and spare parts networks of its partner. All of these resources are already in place for manufacturing, selling, and servicing its cars.

This cooperation thus significantly exceeds merely leasing a few square meters of factory space. Leapmotor International is 51% owned by Stellantis and 49% by Leapmotor. The European group directly participates in the development of the Chinese brand outside its domestic market. Its interest is obvious: to feed its industrial tool and benefit from competitive electric technology. Leapmotor, in turn, finds a shortcut to settle in the Old Continent.

Less duty on imported cars, production closer to customers, and shared infrastructures: the ingredients are in place to strengthen the pricing offensive. The question remains of how this advantage will be distributed between lower prices, additional equipment, and preserved margins. No new price reduction has been announced in this statement. But Leapmotor is setting itself up to maintain pressure. With the delicious paradox that a part of Chinese competitiveness might now emerge from the historic factories of the European auto industry.

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• 19/10/2026 18:08

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