The first collaborative model between Leapmotor and Hongqi is already in the development process and is planned to be launched for sale in the second half of next year leveraging FAW’s overseas sales channels.
In the first half of this year, Leapmotor’s revenue reached RMB 24.25 billion, a year-on-year increase of 174.0%, with a gross profit margin of 14.1%, reaching a record high since the company’s establishment.
On August 20, according to Chinese media report, China’s FAW Group is planning to acquire a stake in Leapmotor. The initial plan involves a tender offer to purchase approximately 10% of Leapmotor’s shares. This proposal is currently being circulated and advanced within the relevant departments at FAW.
Signs of collaboration between China’s FAW Group and Leapmotor emerged earlier. On March 3 of this year, the two parties signed a Memorandum of Understanding (MOU) on Strategic Cooperation, planning to engage in strategic collaboration across both R&D and capital dimensions.
Merely 20 days after the MOU was signed, a project listed on FAW’s electronic bidding procurement platform revealed that the technical procurement contract for the joint development and platform licensing fees of the Hongqi brand’s G117 vehicle had been awarded to Leapmotor.
An informed source disclosed that the first collaborative vehicle model between Leapmotor and Hongqi is already in the development process. Plans are in place to leverage FAW’s overseas sales channels for its market launch in the second half of next year (2026).
On August 18, Leapmotor officially released its financial report for the first half of 2025. The data shows that the company’s revenue reached RMB 24.25 billion, a year-on-year increase of 174.0%. The gross profit margin stood at 14.1%, hitting a record high since the company’s founding. Net cash generated from operating activities amounted to RMB 2.86 billion.
In terms of deliveries, Leapmotor delivered 221,700 vehicles in the first half of the year, a year-on-year growth of 155.7%. Notably, monthly deliveries in July exceeded 50,000 units for the first time, setting a new milestone.
Leapmotor stated that the collaboration with FAW in components is undergoing in-depth discussions, with many plans currently being implemented. The company added, “Leapmotor and FAW have intentions to deepen cooperation across multiple areas, including complete vehicles, software, and platforms.”
Not limited to breakthroughs in domestic sales, Leapmotor’s exports from January to July 2025 reached 24,980 units, ranking first among new electric vehicle manufacturers. According to the plan, Leapmotor aims to establish a manufacturing base in Europe next year, initially rolling out its B-series products there, with the goal of doubling its overseas sales year-on-year.
As of the end of June 2025, Leapmotor International had established over 600 sales and service outlets across approximately 30 international markets, including Europe, the Middle East, Africa, and the Asia-Pacific region.
The cooperation between FAW and Leapmotor is a typical example of resource synergy and complementary advantages. With the backing of FAW, a major player in the industry, Leapmotor’s bargaining power in areas such as component procurement will significantly improve, reducing costs and enhancing the price competitiveness of its products.
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