Leapmotor's Electric Expansion: Manufacturing Cars in Spain

Introduction

Leapmotor, a prominent name in the electric vehicle (EV) industry, has confirmed its plans to build electric cars in Spain. This exciting move marks a significant step in the brand's expansion strategy within the European market. With the launch of new models that are more aligned with European preferences, Leapmotor aims to establish itself firmly among the continent's growing list of EV manufacturers.

Plans for Production in Spain

During a recent financial group event, Stellantis CEO Antonio Filosa announced that Leapmotor would begin manufacturing in Spain starting in 2026. Although specific details regarding the models to be produced were not disclosed, it is anticipated that the B10 crossover and B05 hatchback will be the frontrunners for European production. This strategic decision enables Leapmotor to tap into the thriving European automotive market while also avoiding the hefty tariffs currently imposed on imported vehicles.

The Zaragoza Plant

Reports suggest that the Zaragoza plant, which currently produces vehicles such as the Peugeot 208 and Opel Corsa, could become Leapmotor's primary manufacturing site. The facility is undergoing expansion, including the construction of a €4.1 billion gigafactory dedicated to LFP batteries, a joint venture between Stellantis and CATL, a leading Chinese battery supplier. This move positions the Zaragoza plant as a pivotal hub for Leapmotor's European operations.

Meeting European Demand with the B10 and B05

Among its upcoming models, the B10 crossover is generating significant interest due to its design and specifications tailored for the European market. This 4.5-meter-long vehicle is set to compete in the C-segment, where it will go head-to-head with established rivals. Additionally, the B05 hatchback is also expected to follow soon after. Both models are anticipated to help Leapmotor gain traction in a competitive environment dominated by larger automotive brands.

Advantages of Local Production

By manufacturing its vehicles in Spain, Leapmotor can bypass the 20.7% tariff applied to EV imports from China, making their cars more competitively priced for European consumers. The new production strategy aligns with the brand's commitment to affordability, aiming to position its offerings below rival vehicles in the same segment. Leapmotor's advantage arises from its control over a substantial part of its supply chain, allowing it to optimize production processes from design to manufacturing.

Enhancing Product Appeal

Leapmotor's initial models launched in Europe, such as the T03 city car and the C10 SUV, were developed without input from Stellantis's European R&D departments. However, according to Tianshu Xin, CEO of Leapmotor International, forthcoming models, including the B10 and B05, will benefit significantly from the engineering insights and resources available at Stellantis. This collaboration is expected to make Leapmotor's future offerings more suitable for European consumers, who exhibit distinct preferences and expectations in vehicle design and performance.

Feedback-Driven Design

“Understanding the behavior of European customers takes time,