In the first half of 2026, China's total automotive exports reached 5.31 million units, including 2.42 million new energy vehicle exports, a year-on-year increase of 70%. The image shows Leapmotor's B10 and C10 global models at the 2026 Indonesia International Motor Show.

Statistical data shows that in the first half of 2026, China's total automotive exports reached 5.31 million units, a year-on-year increase of 53%; among them, new energy vehicle exports reached 2.42 million units, a year-on-year increase of 70%, further consolidating China's position as the world's number one automotive exporting country.

On the one hand, geopolitical risks have driven up global oil prices, enhancing the competitiveness of Chinese new energy vehicles; on the other hand, the continuous expansion of the 'Global South' markets has prompted Chinese automakers to rush to accelerate their overseas layouts. For Leapmotor Motors, aiming to challenge the annual sales milestone of 1 million units, the July results further validate the effectiveness of the domestic and international dual-wheel drive.

It is understood that Leapmotor delivered 101,267 units in the domestic market in July, doubling year-on-year, becoming the first new force automaker to break the 100,000 units monthly sales mark. In the first half of this year, Leapmotor's cumulative sales reached 356,487 units, a year-on-year increase of about 97%, making it the only new force brand to break the 300,000 units sales milestone in the first half of this year. Models such as A10, B Series, C10, and D19 bloomed in multiple points, consolidating Leapmotor's growth foundation.

Recently, Leapmotor showcased its two global models, Leapmotor B10 and C10, at the 2026 Indonesia International Motor Show and officially announced its entry into the Indonesian market. Leapmotor also jointly announced with the Indonesian Indomobil Group the official launch of localized KD assembly production in Indonesia. Through deep cooperation with PT National Assemblers under the Indomobil Group, Leapmotor achieved a leap from product output to localized whole industry chain layout. As of now, Leapmotor has formed a dual manufacturing base layout in Malaysia and Indonesia, becoming one of the few Chinese new energy brands with dual KD capacity in Southeast Asia.

Some analysts believe that China's new energy vehicle industry has currently formed a development pattern of 'domestic scaling as a bottom line, global expansion adding volume', and neither aspect should be neglected. For example, Leapmotor's breakthrough of 100,000 units in monthly sales marks that new force automakers have officially entered the volume tier of mainstream automakers. Industry competition has shifted from single-product comparison to a long-term contest of comprehensive systems including supply chain, self-developed manufacturing, and channel services.

In recent years, Chinese new energy vehicles going global have bid farewell to simple whole vehicle exports, shifting to a new stage of 'technology export + local factory construction + ecosystem co-building'. It is understood that relying on the three-party synergy with Stellantis and the Indonesian Indomobil Group, Leapmotor adopts a brand co-store sales model, leveraging local mature distribution networks. The plan is to complete 50 service outlets in Indonesia by the end of the year, covering the full pre-sales and after-sales chain. In fact, localized production not only avoids import tariffs and shortens delivery cycles but also drives local employment and supporting industry chain upgrades, aligning with the policy orientation of ASEAN countries to cultivate their local new energy industries. As of now, Leapmotor's overseas business covers more than 40 countries and regions globally, with over 2,000 stores, and global cumulative deliveries have broken through 1.5 million units. Southeast Asian localized manufacturing will become a key fulcrum for its global expansion.

"Practice proves that Leapmotor is becoming a typical sample of new energy vehicle companies with the 'domestic scaling, global localization' dual-wheel drive." Independent auto analyst Bai De believes that on the one hand, the domestic market is responsible for 'revenue generation, training, building industry chains', and on the other hand, the international market is responsible for 'expansion, setting standards, sharing risks'. Only by making good use of the domestic and international market dual-wheel drive can Chinese new energy vehicles consolidate their global leading advantages and achieve high-quality development of the automotive industry.

Bai De emphasized that on the basis of achieving scaled growth, Chinese new energy vehicles must continue to invest in technological innovation. It is revealed that Leapmotor will hold a Technology Day in September 2026, upgrade the world model intelligent driving system, and achieve universal implementation of high-level intelligent driving with low computing power.

As more Chinese automakers adhere to technology-based enterprise development, delve into cutting-edge self-developed technologies, perfect product matrices, and promote localized industry layouts, China's new energy industry's global competitive advantage will continue to be consolidated, and the process of Chinese automotive industry upgrading and global green transportation transformation will also accelerate further.

On August 1st, sales data for July for various new energy vehicle brands were released.

Leapmotor Cars revealed its July "achievements" first — 101,267 units, a year-on-year increase of 102%, equivalent to more than double the same period last year.

Leapmotor broke through the 100,000-unit delivery threshold for the first time, becoming the first vehicle manufacturer in the history of China's new car makers to achieve single-month deliveries exceeding 100,000 units.

The drama lies in: Xpeng 38,027 units, NIO 35,934 units, Li Auto 30,468 units — the former "Top 3 of NIO, Xpeng, and Li Auto" now only match Leapmotor when combined. Li Auto even saw double declines month-on-month and year-on-month for three consecutive months. Once the top dog among new forces, it is now far behind Leapmotor by more than three times.

Even Huawei's "Harmony Intelligence" alliance ("Five Realms"), which claimed to "lead far ahead," had July sales of 45,046 units.

Many car enthusiasts only realized at this point: When did Leapmotor become this amazing?

01. Others Make Money from Branding, Leapmotor Makes Money from "Factory" Costs

The core reason Leapmotor has reached today is four words: Full-Stack Self-Research.

Many people don't grasp these four words, thinking isn't it just about developing things yourself? But what Leapmotor does is far more extreme than most imagine.

As of now, Leapmotor's self-developed and manufactured parts account for 65% of the total vehicle BOM cost. What does that mean? From the core "three-electrics" (battery, electric drive, electric control) to smart cockpits, smart driving, and electronic architecture, extending to compressors, headlights, seats, bumpers, and on-board power supplies—things traditionally thought unnecessary to build in-house—as long as the value is high enough, Leapmotor does it all itself.

Zhu Jiangming calculated a figure: Based on the industry average gross margin of 15% for auto parts, just from self-research, Leapmotor's cost per vehicle is about 10% lower than competitors.

What does this 10% mean? It means with the same configuration, Leapmotor can be 10,000 to 20,000 cheaper than others and still make money; while selling at this price causes others to lose money, Leapmotor can still maintain a healthy gross margin.

This is not a marketing gimmick; it is a manufacturing gene carved into Zhu Jiangming's bones. Many may have forgotten that before making cars, Zhu Jiangming was one of the founders of Dahua Technology, engaged in security manufacturing for decades. What was the environment of the security industry? Price wars down to the bone, squeezing costs penny by penny. Others see suppliers that need management; Zhu Jiangming sees how much profit from middlemen can be squeezed out.

A classic example is headlights. When Leapmotor made its first car, supplier quotes were several thousand yuan per set. Zhu Jiangming led the team to calculate it themselves, using Dahua's embedded technology accumulation to self-develop, ultimately cutting the cost in half.

So you find Leapmotor's cars strange: Why is the configuration higher and the price lower than others? It's not Leapmotor losing money to shout for sales; it's because it gives all the profit from the middle of the supply chain to consumers. In Zhu Jiangming's own words: "We just make money from being a contract factory, everything else goes to the users."

02. Does Leapmotor Have Its Own Core Technologies?

Many people have a misconception about Leapmotor, thinking it relies solely on cheapness and lacks technology.

This is actually the biggest misunderstanding.

Low price is just the result; behind it is a whole self-developed technology system supporting it.

The most core is the "Cloverleaf" Central Integrated Electronic Electrical Architecture. This is complex if complicated, simple if simple: Traditional cars use a distributed architecture where dozens of ECUs manage their own tasks; Leapmotor uses one SOC chip plus one MCU to integrate the functions of the Cockpit, Smart Driving, Powertrain, and Chassis four domains together.

What is ruthless is that this architecture isn't just for flagship models; even the 100,000-level A10 has it as standard, which was unthinkable in the past.

With centralized architecture, the whole vehicle's response speed, OTA capability, and failure rate will be much better, and costs will drop instead.

Next is CTC 2.0 Plus Battery-Chassis Integration Technology. Leapmotor is one of the earliest Chinese vehicle manufacturers to mass-produce CTC; now cumulative installations exceed 500,000 units. Simply put, the battery is integrated directly with the chassis, removing the traditional battery pack cover, saving space and reducing weight while increasing body rigidity. Regarding safety, Leapmotor's battery achieves thermal runaway prevention for 48 hours without fire or explosion, which is 24 times the new national standard.

Regarding the three-electrics, Leapmotor's intelligent oil-cooled electric drive is fully self-developed and manufactured. The 8-in-1 integration degree is higher than the industry mainstream 3-in-1 or 6-in-1, with better efficiency and reliability. The 800V High-Voltage SiC platform is not exclusive to high-end cars; from the 200,000-level C series to the 100,000-level B series, everything needed is included. Coupled with 4C supercharging, the energy replenishment speed fully matches the first tier.

Smart driving was previously Leapmotor's weak point, but now it has caught up. The combination of LiDAR + Qualcomm 8650 smart driving chips can already achieve full-scenario navigation from parking spot to parking spot, and it is standard with permanent free use. In September's Technology Day, Leapmotor will also launch the next-generation smart driving based on world models, directly benchmarking the industry's first tier.

To put it plainly, Leapmotor isn't without technology; it puts all technology where users can touch it, rather than spending on marketing and brand premium.

03. Covering Everything from 60,000 to 300,000, This Is the Greatest Open Strategy

Leapmotor's second smart move is that it never had the "baggage of a new force" mindset.

When other new forces started, almost all focused on the high-end market above 300,000 yuan, talking about brand, tone, and user circles, as if they weren't qualified as new forces if they didn't sell a bit more expensive. Result? As soon as the market fluctuates and high-end consumption power drops, sales immediately come under pressure. Li Auto's current predicament is largely because its products are all stuck above 300,000 yuan, unable to go up or down.

Leapmotor is different; it never thought about doing only high-end from the start. Now Leapmotor's product matrix, A, B, C, D four series, covers from the 60,000 yuan entry-level car all the way to the flagship MPV above 300,000 yuan, covering all mainstream price bands without missing a single one.

The sales structure of the just-ended July explains the problem well:

1. A-series A10, monthly sales near 30,000 units; this is Leapmotor's basic base, firmly grasping the widest range of entry-level users;

2. B-series broke 20,000 units in July, with global cumulative sales already reaching 250,000 units;

3. C-series C10 global monthly sales steadily break 10,000, C-series cumulative sales reached 850,000 units;

4. High-end D19 monthly sales broke 10,000, newly launched MPV D99, the average price of the first batch of orders went directly to over 300,000 yuan.

Low-end cars drive volume to dilute costs, mid-range cars contribute profits, high-end cars build brand image, forming a complete pyramid across the entire price band.

Unlike other new forces that walk on one leg and wobble when the market changes, this is the most terrifying part of Leapmotor.

Many people look down on low-end cars, thinking 60,000 or 80,000 yuan cars don't make money.

But the fact is, it is precisely these volume-driving entry models that supported Leapmotor's supply chain scale.

The larger the scale, the lower the cost of self-developed parts; the lower the cost, the more competitive the product, then selling more — this is a positive cycle.

Now this cycle is already turning.

04. Leapmotor's Overseas Business Is More Intense Than Anyone Thinks

Many only see Leapmotor selling well domestically, failing to notice its overseas business has quietly become the number one among new forces.

Leapmotor's internationalization follows the "borrowing a boat to go overseas" route in cooperation with Stellantis. No need to build channels from scratch; directly use Stellantis' dealer network globally. Now Leapmotor has entered 35 countries and regions worldwide, with over 800 overseas sales service outlets.

In 2025, Leapmotor exported 60,000 units for the full year, the most among new forces. This year the speed is even faster; in July, it just started delivery in Mexico and announced local KD assembly production in Indonesia.

In Europe, Leapmotor B10 sells starting from €29,900, which converts to over 230,000 RMB, more than double the domestic price, yet it still sells well — in the Italian market, 1 out of every 3 pure electric cars is a Leapmotor B10.

Zhu Jiangming's goal is even more exaggerated; he says Leapmotor's future overseas sales share must account for 60% of total sales. What does that mean?

If Leapmotor really achieves annual sales of 1 million units next year, that is 600,000 units for export; this number is something even many traditional car manufacturers cannot achieve now.

In contrast, other new forces' overseas efforts, NIO and Xpeng, are still in a small-scale trial phase; Li Auto basically hasn't gone overseas at all. When the domestic market is fighting fiercely, Leapmotor has already opened a second battlefield overseas, using domestic cost advantages to fight the overseas market; this is another dimensional strike.

05. Does Leapmotor Have Weaknesses?

Monthly sales of 100,000 is naturally not the endpoint; Leapmotor itself knows very well where the weaknesses lie.

Previously many complained Leapmotor's smart driving was average, after all, money was spent on hardware and three-electrics, so software algorithm investment came relatively later.

But Zhu Jiangming has already announced that this September on Leapmotor Technology Day, Leapmotor will release a smart driving system based on world models and will catch up on smart driving.

In addition, the all-new model A05 will be released in August, making the product matrix denser.

From monthly sales of a few hundred units 6 years ago to 100,000 units today, the path Leapmotor took is actually not fresh at all — it's just the traditional manufacturing model: keep technology in your own hands, bring costs down, spread products fully, and take the market to the whole world.

It's just that in the industry where everyone wants to tell new stories and overtake on a bend, there are too few willing to put in this kind of hard work.

While other new forces were still struggling hard for monthly sales of 30,000 or 40,000 units, Leapmotor has quietly set its goal at annual sales of 1 million, even 4 million in the future.

Now looking back, it's not that Leapmotor suddenly became popular; it's just the harvest season.

Now looking back, it's not that Leapmotor suddenly became popular; it's just the harvest season.

The 2026 Indonesia International Auto Show officially kicked off. Chinese smart electric vehicle brand Leapmotor appeared with global flagship models Leapmotor B10 and C10, announcing its entry into the Indonesian market. The simultaneous local KD assembly plant production plan is a significant milestone in Leapmotor's Southeast Asian localization production strategy. Leveraging full-domain self-developed technology and local channel resources, Leapmotor uses Indonesia as a core fulcrum to build a new energy industry layout covering the entire ASEAN region.

The B10 and C10 landing in Indonesia this time are strategic models built by Leapmotor for the global market, precisely aligning with the core needs of Indonesian family travel. Spacious interior space and a full suite of smart in-vehicle configurations have become the core competitiveness of the two models. Supporting the product differentiation advantage is Leapmotor's long-term full-domain self-research route. Core parts independently developed and manufactured by the brand account for over 65% of the total vehicle cost, covering key vehicle sections such as electric drive systems, power batteries, smart cockpits, and central electronic/electrical architecture. This highly vertically integrated self-research system not only continuously compresses R&D and manufacturing costs but also allows Leapmotor to quickly iterate electrification and intelligence technologies, providing product solutions adapted to local road conditions and driving habits for overseas markets.

Local manufacturing is Leapmotor's core lever for deep diving into the Indonesian market. Leapmotor reached deep collaboration with Indonesia's local top enterprise Indomobil Group, leveraging its subsidiary PT National Assemblers to build KD semi-knocked-down assembly lines. This production base located in Bekasi was completed for production and debugging as early as April 2026. The first batch of locally assembled B10 and C10 models will be officially delivered to Indonesian consumers in August 2026. With the Indonesian KD factory landing, Leapmotor simultaneously possesses two major Southeast Asian local production bases in Malaysia and Indonesia, becoming one of the few new energy vehicle enterprises in the region with dual KD manufacturing capacity. The local production model not only shortens vehicle delivery cycles and avoids cost pressure brought by whole vehicle import tariffs but also drives the development of the local automotive supply chain in Indonesia, creates a large number of technical jobs, and achieves two-way empowerment of brand development and local industrial upgrading.

A complete sales service network is an important support for overseas market development. Leapmotor leverages dual cooperation resources to build a service system covering all of Indonesia. On one hand, relying on Stellantis Group's mature brand house operation model, Leapmotor entered local Stellantis brand showrooms, displaying and selling alongside well-known models like Jeep and Citroën in the same store, creating a one-stop car viewing, buying, and maintenance service scenario. On the other hand, relying on Indomobil Group's distribution channels deeply cultivated in Indonesia for years, its subsidiary PT Indomobil National Distributor is fully responsible for retail layout. The brand plans to build 50 offline outlets integrating sales, after-sales, and maintenance in Indonesia by the end of 2026, eliminating channel concerns for local consumers purchasing new energy vehicles.

Entering the Indonesian market is also a key result of the landing of Leapmotor and Stellantis's global strategic cooperation. Both parties reached capital cooperation in 2023, and in 2024 formed an international joint venture focusing on overseas markets. Relying on multinational group global channel resources, Leapmotor products are now sold to over 40 countries globally, offline sales outlets exceeded 2,000, and global cumulative vehicle delivery volume exceeded 1.5 million units. Facing long-term development in Southeast Asia, Leapmotor has set a clear product iteration rhythm, planning to launch a new model for the ASEAN market every year, continuously enriching the pure electric and extended-range dual-line product matrix, covering consumer groups with different price points and usage scenarios.

The landing of this Indonesian market is not just a simple expansion of Leapmotor's overseas territory but also a brand new practice of the localization overseas model for Chinese new energy vehicle enterprises. In the future, Leapmotor will continue to deepen collaborative cooperation with Stellantis and Indomobil local partners, centered on the Indonesia manufacturing base, linking markets of various Southeast Asian countries, building a complete localized R&D, production, sales, service electric mobility ecosystem, letting Chinese new energy vehicles with both high cost-performance and cutting-edge intelligent technology benefit more ASEAN household users, continuously conveying a brand new lifestyle of green smart mobility.

On July 24, at the GIIAS Indonesia International Auto Show, Leapmotor announced its official entry into the Indonesian market. Leapmotor's KD assembly plant, in cooperation with PT National Assemblers under the Indomobil Group, started operations in Purwakarta, West Java this April. The first batch of Leapmotor B10 and C10 units are expected to be delivered to Indonesian users starting in August.

Light Asset Entry, Heavy Technology Backing

Against the backdrop of BYD's Subang plant putting 150,000 units of annual capacity into production and SAIC-GM-Wuling deepening its roots in Cikarang for many years, Leapmotor chose a differentiated light asset path, with its core chips lying in vertical technology integration. Leapmotor includes about 65% of core components in the total vehicle cost, such as electric drive, battery systems, and electronic/electrical architecture, into the self-research category. In this model, although only knock-down assembly is performed in Indonesia, core parts are supplied directly from the China headquarters. This effectively avoids quality control fluctuations caused by insufficient early localization rates and ensures the Purwakarta-made experience is consistent with the Hangzhou-made one.

Channel Leverage, Avoiding Trial-and-Error Costs

Relying on Stellantis Group resources, Leapmotor will enter the Stellantis Brand House in Indonesia, sharing showroom traffic with Jeep and Citroën brands. Meanwhile, PT Indomobil National Distributor will undertake the national distribution task, planning to build 50 sales and service outlets by the end of 2026. The strategy of "leveraging the wall to take root" significantly shortens the market cultivation period. Under the current circumstance of Indonesia's after-sales infrastructure not yet being perfect, sharing the after-sales outlets of mature brands directly reduces consumers' purchase concerns and the brand's operational risks.

Dual-Point Layout, Hedging Tariff Risks

With the Indonesian plant landing, Leapmotor has formed a dual KD pivot structure of the Malaysia Kulim Plant and the Indonesia Purwakarta Plant in Southeast Asia. This layout directly targets the complex Rules of Origin in ASEAN. Current Indonesian policy requires an EV localization rate of 40% in 2026, rising to 60% in 2027. Leapmotor meets the standard quickly through the KD model. Compared to the factory construction cycle of full processes that often takes 2 to 3 years, it secured at least an 18-month policy window period.

Pricing Strategy Shows Cost Advantages

Prices announced on site show that the Leapmotor B10 Jakarta on-road price is 499 million Indonesian Rupiah (approx. 220,000 RMB), and C10 is 618 million Indonesian Rupiah. Combined with special discounts for the first 500 orders before the auto show, Leapmotor precisely cuts into the pure electric SUV consumption segment of middle-class families in Jakarta.

An Attempt from Internal Competition to External Expansion

Currently, the market share of Chinese brands in Indonesia's new energy vehicle market exceeds 90%. Leapmotor's entry this time provides a new paradigm for going global: "full-domain self-research + local assembly + giant channel". Currently, Leapmotor's global cumulative deliveries have surpassed 1.5 million vehicles, with business covering more than 40 countries. The landing of this Indonesia KD project marks that its global expansion strategy is transforming from single-trade exports to a regional manufacturing center.

July 2026, Leapmotor showcased the two global models, Leapmotor B10 and C10, at the 2026 Indonesia International Motor Show (GIIAS 2026), and officially announced entry into the Indonesia market. On the same day, Leapmotor and Indonesia's Indomobil Group jointly announced the official initiation of localized KD assembly production in Indonesia. Through deep cooperation with PT National Assemblers, a subsidiary of Indomobil Group, Leapmotor brings an excellent smart mobility experience to Indonesian consumers.

Dual Model Premiere, B10 and C10 Debuts in Indonesia

These two global strategic models showcased at the 2026 Indonesia International Motor Show this time—Leapmotor B10 and C10—both reflect Leapmotor's core advantage of "Full-domain independent R&D". Leapmotor independently develops over 65% of vehicle core components exceeding the total vehicle cost, including electric drive, battery system, smart cockpit, and electronic and electrical architecture. This high degree of vertical integration capability enables Leapmotor to continuously optimize costs from design to production and quickly drive technological innovation.

With the growing family vehicle demand in the Indonesia market, Leapmotor B10 and C10 will bring high-quality electric mobility experience to local consumers through rich intelligent configurations and outstanding space performance.

Localized Manufacturing Implemented, KD Factory Officially Begins Production

Leapmotor cooperates with PT National Assemblers, a subsidiary of Indomobil Group, and has currently initiated localized KD assembly production in Indonesia. The Indonesia KD factory officially commenced operations in April 2026. The first batch of Leapmotor B10 and C10 models off the line are expected to start delivery from August.

With the official production of the Indonesia KD factory, Leapmotor has formed a Malaysia-Indonesia localized manufacturing layout, becoming one of the few new energy vehicle brands in Southeast Asia possessing dual KD production bases, laying a solid manufacturing foundation for next steps radiating to the entire ASEAN market. Leapmotor's localization layout in Indonesia not only can quickly respond to market demand but also will create technical jobs for the locality and promote the localization development of the supply chain.

Dual Support from Stellantis and Indomobil, Building a Complete Sales Service System

Leapmotor regards Indonesia as an important base for manufacturing and growth in the Southeast Asia region. Leveraging the Stellantis Brand House (Stellantis Brand House) model, Leapmotor will sell in the same store as brands such as Jeep and Citroën, providing consumers with a one-stop sales and after-sales service experience. Benefiting from Indomobil Group's nationwide distribution network and retail system, Leapmotor's sales and network development locally will be handled by PT Indomobil National Distributor, and it plans to build 50 sales and service outlets in Indonesia by the end of 2026.

Leapmotor's entry into the Indonesia market is another important result of global strategic cooperation with Stellantis. Currently, Leapmotor's business has expanded to over 40 countries globally, possessing over 2000 sales outlets, and the global cumulative delivery volume has exceeded 1.5 million units. With the gradual promotion of localized KD production and the continuous enrichment of product lines, Leapmotor plans to launch a new model annually, continuously bringing more electric vehicle models equipped with cutting-edge technology to Indonesia and surrounding markets.

Leapmotor persists in full-domain independent R&D of core technologies. In the future, Leapmotor will continue to deepen strategic synergy with Stellantis and local partners, with Indonesia as a fulcrum, accelerate the construction of an electric mobility ecosystem covering Southeast Asia, and allow more consumers to enjoy the new life of green smart mobility brought by technology inclusiveness.

"In the first 5 months of this year, hundreds of new car models launched, but sales contracted. The combination of declining sales, revenue, and profits is unprecedented." At the just-concluded 2026 China Automotive Chongqing Forum, Wang Xia, President of the Automotive Division of the China Council for the Promotion of International Trade and President of the Automotive Chamber of the China Chamber of Commerce, pinpointed the chronic involution in the current auto market.

The first half of this year has not ended yet, with 544 new car models launched domestically, including 71 brand new and facelifted models. However, national passenger car retail sales dropped nearly 20% year-on-year in the first 5 months. If exports are excluded, this figure is 23.8%. Not only fuel vehicles, but new energy vehicles also declined over 15% year-on-year. The auto market has fallen into 'false diligence' where the more effort one puts in, the more poignant it becomes.

The most terrifying aspect is that the automotive industry's profit margin was only 3.2% in Q1, a historical low. Regarding this, President Wang Xia stated: "Sales without profit support are just empty number games; profits maintained by subsidies are ultimately a castle in the sand."

As top new force players, Li Auto and Xpeng reported revenue growth rates of -11.4% and -17.6% respectively in Q1 2026. NIO benefited significantly from high-end models like the new ES8 launched in Q4 last year, with a growth rate of 112.2% in Q1, but still reported a net loss of 330 million yuan. Leapmotor, ranked first in deliveries, had a growth rate of 8%, with revenue hitting a record high for the same period last year. Why was Leapmotor able to achieve a 'double kill' of sales and revenue during the Q1 downturn in the auto market? Will the newly launched C Series help Leapmotor achieve its annual million sales target?

C Series sales share decline 'reasonable'? Will it definitely return to 50% after new launch!

Leapmotor was the new force sales champion of 2025. Following a full-domain self-research route, over 65% of core components are self-produced, resulting in lower manufacturing costs than competitors. The product matrix simultaneously covers the 100,000-200,000 yuan market segment. Pure electric + extended range dual lines have no shortcomings. Coupled with sufficient capacity support for continuous delivery, the pragmatic industrialized car manufacturing route and the 'half-price home SUV' label perfectly fit current mainstream consumer demands. This is the reason for its counter-trend growth.

In the past two years, C10/C11/C16, C Series models contributed massively to Leapmotor's sales. Sales share was 77% in 2024, 55% in 2025, but only 36% in Q1 2026. Why do the sales pillars fail? Because Leapmotor knows that to achieve the million sales target, C Series alone cannot support it; they must optimize product structure and bloom at multiple points.

So at the end of last year we saw the volume-driving A Series, profit-guaranteeing B Series, foundation C Series, and premium D Series. These four pillars support Leapmotor's sales. This year Q1 was also the C Series gap period, old models clearing stock, users waiting for facelifts, demand will concentrate on the second half.

The recently launched Leapmotor C Series focuses on unchanged prices with upgraded configurations. The whole range gets 8295 chips, LiDAR is moved down, and range is improved. This product structure repair was very timely, filling all pain points, so C Series sales share will significantly recover in the second half. Bold prediction: it will return to 50%.

Can the million sales target still be achieved? Where is the bottleneck? How to win?

Conclusion first: The 1 million annual sales target is challenging to reach, but likely achievable. Leapmotor's annual sales target composition is 900,000 domestically, 100,000-150,000 overseas.

Bottlenecks remain, a well-worn topic being slow capacity ramp-up. The Jinhua, Zhejiang factory producing the 100,000 yuan main model A10 started two-shift production in April, aiming for 30,000+ capacity in June. It still has distance from the 100,000 per month target. The Hefei factory just started production in May, with two-shift annual output 200,000-400,000, but capacity release is late, contributing limitedly in the short term. Plus battery cells, chips, and automotive-grade storage are still tight and prices are rising, restricting full production progress.

However, Leapmotor is very confident in the Jinhua, Hangzhou, Hefei golden triangle capacity layout, with a total annual planned capacity of 1.46 to 1.51 million units, nearly 1.5 times the million sales target. There is determination that as long as orders continue to pour in, they can handle this tremendous fortune.

Back to products, A10 first month firm orders broke 40,000 units, D19 broke 15,000 firm orders in 15 days. Plus this month's facelifted C Series, sales will likely hit new highs in the second half. Also, there is an ace card positioning the 50,000-70,000 yuan range, targeting the sinking market—A05 launching soon. This small car can add L2-level driving assistance systems, crushing competitors at the same level.

As long as Leapmotor can take a huge market share in this price range, other competitors will have no chance to turn the tables. Consumers at this price point are usually very price-sensitive. Either first-time buyers with budget constraints, or second family cars with limited demand, so price will be the biggest factor in decision-making. A05 will likely become a rocket accelerator on Leapmotor's million sales journey.

Except for the domestic market, Leapmotor Q1 overseas exports were about 40,000 units, exports skyrocketed 442% year-on-year, ranking first in export volume and export share among new forces. This benefits from Stellantis Group's 40 countries, 800+ store resources. Leapmotor doesn't need to build global channels itself, which is unique among all new forces. In the second half, with factories in Spain, Malaysia, etc., going into production, Leapmotor's overseas sales might have even bigger surprises.

In the road to smashing the million sales target, Leapmotor has one last trick: trade price for volume. Compared to competitors, Leapmotor still has room for price cuts in the 100,000 yuan range, but Leapmotor leading sales won't take risks desperately. After all, once prices drop, it's hard to recover.

Another reason for confidence in Leapmotor's second half sales is market laws. Looking at the past 5 years, the auto market shows a pattern of slow first half, busy second half. Usually, the second half accounts for 55%–60% of the full year. As Leapmotor Vice President Li Tengfei said: "Annual sales will show a trend of first suppress then rise. We are very confident in the goal of hitting 1 million units."

Can selling at low prices break the predicament where bigger scale means weaker profitability?

From annual loss of 5.1 billion to profit of 540 million, Leapmotor interpreted a textbook loss reduction curve in just three years. But Q1 2026 Leapmotor welcomed new challenges. Gross margin 9.4%, less than the 14.9% of the same period last year. Net loss 390 million yuan. Last year same period lost only 130 million yuan. And last year Q4 still made 360 million.

Leapmotor car profit in 2025 was 903 yuan per unit, less than one-tenth of BYD, one thirty-fifth of Li Auto. Selling the most, but earning the least. And B10 new model R&D, overseas channel deployment, Malaysia and Spain factory production, all require continuous investment.

Although Leapmotor has run through the economies of scale loop through extreme cost control and high sales turnover, the profit ceiling under the low-price strategy is gradually becoming clear. Leapmotor sales are still new highs, scale is still growing. By 2028 economies of scale will be fully released, fixed cost per unit significantly diluted.

Additionally, Leapmotor's LEAP 3.5 architecture, C/B Series model component commonality rate reached 88%, amplifying 'reuse effect' not only shortened new model development cycle by 25% compared to previous generation, whole vehicle R&D investment will also reduce by 40%. It also improved procurement bargaining power by sharing core parts like chassis, lights, seats. Only then will economies of scale welcome the true inflection point on profits. At the same time, Leapmotor also announced plans to launch its own second high-end independent brand in 2027. New product pricing will target the 300,000 yuan+ high-end market, opening price ceiling, boosting brand premium.

Domestically using high specs low prices to seize market, overseas Leapmotor actively borships seeking premium space. Global fourth largest carmaker Stellantis Group, after announcing deepening strategic cooperation with Leapmotor on May 8 this year, decided to hand over operation rights even ownership of its European flagship factory to Leapmotor. In the near future the Spain Zaragoza Plant that once produced Opel, Peugeot will produce Leapmotor's B10. And the Madrid Villaverde Plant that once produced Citroën will also start producing Leapmotor in 2028.

Besides this, based on Stellantis Group's advantage of over 30% market share in South America, Leapmotor's Brazil Plant is also progressing in an organized manner. And with South East Asia market performance year-on-year improvement this year, Leapmotor is also actively advancing Indonesia, Malaysia, Thailand plant plans. In the future high gross margin overseas business share will rise, balancing Leapmotor's domestic low-price involution losses.

Conclusion

Leapmotor founder Zhu Jiangming once said: "Only by surviving can we develop. Making scale bigger is a goal more important than profitability." So at this stage after Leapmotor completes the million sales target, it will smoothly pass through the cycle. But profitability yields to scale expansion, annual 5 billion net profit goal will be missed.

Just as President Wang Xia said at the beginning, scale without profit is poison. In this final elimination race of global new energy giants, million sales were never the goal. To get the ticket to the future, either run through unmanned driving, get the next baton of technical revolution, or run through overseas markets, become the 'Toyota' of the new energy era.

Recently, Leapmotor announced May sales data, with single-month deliveries reaching 81,569 units, a year-on-year growth of 81%, and a month-on-month increase of 14.26%. This impressive performance report propelled Leapmotor to become the focus of the domestic new energy vehicle market. Following the current growth pace, the brand's annual sales are expected to break the million mark, joining the top ten domestic passenger car sales rankings. Comparing industry data reveals that last year the tenth domestic automaker had an average monthly sales volume of about 71,000 units, while Leapmotor's current monthly sales have surpassed this level. It also widened the gap with top new forces like Li Auto, Xpeng, NIO, Zeekr, etc., as the latter brands maintained May deliveries within the 30,000-unit range. Looking back at the development history, Leapmotor's growth speed is astonishing. In 2019, the first model's annual sales were less than 3,000 units; in 2025, annual deliveries approached 600,000 units; and by this May, it successfully stepped onto the monthly sales 80,000-unit plateau, becoming one of the fastest-growing new energy brands in China. As sales continue to rise, the market also began to explore which consumers are choosing Leapmotor vehicles.

Currently, the penetration rate of new energy vehicles in China has surpassed 50%, and the market development logic has witnessed a significant shift. In the early stage of industry development, new energy vehicles mainly relied on tech-savvy early adopters who love new things. Now, the core driving force for market growth has gradually shifted to the replacement demand of traditional fuel car owners. For ordinary family consumers, car purchasing focuses more on practicality and cost-effectiveness. Currently, in most regions in China, 92 octane gasoline prices have long stayed around 8 yuan per liter. Annual fuel costs for a conventional fuel car often exceed 10,000 yuan. The lower usage costs of new energy models have become a key factor in attracting replacement buyers. Leapmotor's main products focus on the 100,000 to 200,000 yuan price range, which is the largest passenger car volume segment in China, precisely capturing the two market trends of fuel car replacement and new energy vehicle penetration into lower-tier markets. Surveys show that many walk-in intention users originally drove mainstream family fuel cars like Sylphy, Lavida, Haval H6, etc. When choosing cars, they value interior space, range capability, practical configuration, and cost-performance ratio more. Meanwhile, charging infrastructure in tier-3, tier-4 cities and county markets continues to improve, making up for the shortfalls of new energy vehicle penetration. Leapmotor's entry-level model A10 has gathered numerous orders in tier-3 and lower cities. Only months after launch, this model's May sales reached 23,000 units, fully demonstrating the consumption potential of lower-tier markets.

Combining the domestic vehicle insurance data for the first four months of 2026, one can clearly outline the overall profile of Leapmotor's domestic users. Data shows that multiple models under Leapmotor share sales pressure, and the product matrix development is balanced. Among them, C10 cumulative insurance coverage is close to 30,000 units, accounting for the highest proportion of total sales. Models like B01, C11 also have impressive market performance. From the user attribute perspective, Leapmotor's core customer group is pragmatic family users. Purchase budgets are mostly concentrated around 150,000 yuan, pursuing high space utilization, reliable range, smart configuration, and low usage costs. Different models correspond to differentiated consumer groups: The entry model A10 mainly targets families with children, belonging to first-time purchase or additional purchase models for the family. Female user proportion is considerable, and many users prefer the long-range version. Usage scenarios include long-distance self-driving. While the flagship SUV D19 targets the middle-class upgrade replacement group. Car owners are mostly middle-aged and young workplace management levels. Among them, there are many old owners of luxury brands and old Leapmotor users. Positioning leans towards the high-end family market. From the city distribution perspective, Hangzhou, Guangzhou, Chongqing, Shanghai, Chengdu, and other tier-1 and new tier-1 cities are Leapmotor's main sales bases. The Zhejiang local market is particularly well-rooted, and sales in multiple prefecture-level cities remain firmly at the forefront. It is worth mentioning that Leapmotor's sales basically come from personal private car procurement. The proportion of operating vehicles is extremely low, and terminal market development is very healthy.

Besides deepening the domestic market, the overseas market has also become a brand new growth engine for Leapmotor. In the first four months of 2026, Leapmotor accumulated exports of 64,000 units. April single-month exports reached 22,000 units, accounting for 30% of that month's total sales. The brand tailored different models for different overseas road conditions, purchasing power, and driving habits, launching differentiated models to achieve precise layout. Europe is Leapmotor's largest overseas market. Local fuel costs are high, urban roads are narrow, and the compact and flexible T03 became the export mainstay. Relying on price and configuration advantages, it gained numerous orders in countries like Italy and Belgium. In the Southeast Asian market, local consumers have limited budgets, and the economic and practical T03 is equally popular. The South American Brazil market, with vast territory and high long-distance travel demand, focuses on the extended-range model C10, precisely adapting to local travel scenarios. In terms of channel layout, Leapmotor chose to cooperate with the international automotive giant Stellantis. Leveraging their mature distribution network and after-sales system, they quickly opened the overseas market, while also laying out local factories in places like Spain and Malaysia. This further reduced operating costs and avoided tariffs, accelerating overseas market expansion.

Leapmotor managed to stand out among a crowd of new energy new forces, achieving a monthly sales result of 80,000. Behind this is a clear development strategy and hard-core comprehensive strength. The brand did not blindly chase the high-end market and flashy tech concepts, but has been long rooted in the mainstream family market, creating a complete product matrix covering the 70,000 to 300,000 yuan price band to meet the car usage needs of families at different levels. Full-domain self-research is Leapmotor's core trick for controlling costs. Its core component self-research rate exceeds 65%, and the vehicle platform component commonality rate reaches as high as 88%. This effectively got rid of reliance on external supply chains, allowing products to maintain affordable prices while guaranteeing configuration. Now Leapmotor is working on both domestic and overseas lines, effectively hedging the operational risks of a single market. Financial performance has also remained stable. In 2025, it successfully achieved full-year profit. In the first quarter of this year, under the premise of continuous investment in overseas factory building and new product R&D, it still maintained a considerable gross profit margin.

Looking back at Leapmotor's development path, its success logic is simple and pragmatic: Conforming to the big trend of new energy vehicle popularization, targeting the huge base of ordinary family consumers, relying on R&D technology to control costs, relying on rich models to cover segmented needs, and leveraging cooperative channels to develop the overseas market. At a time when the car market is returning to rationality, consumers no longer simply chase brand gimmicks, but vote with actual consumption choices. Leapmotor's rise also confirms a truth: In the fiercely competitive automotive industry, accurately grasping the real needs of the masses and continuously providing high-value products is how one can stand firm and achieve long-term development.