Stellantis to rapidly grow exports of Chinese EVs to Europe, other countries

Automaker


Stellantis
expects
to
quickly
grow
sales
of
China-made
electric
vehicles
outside
of
the
country
through
a
new
joint
venture
with
Leapmotor,
starting
later
this
year,
according
to
the
two
companies.

The
companies

said
Tuesday
that
beginning
in
September,
sales
of
the
China-built
Leapmotor
vehicles
will
begin
through
Stellantis’
distribution
networks,
including
dealers
in
Europe
—
France,
Italy,
Germany,
Netherlands,
Spain,
Portugal,
Belgium,
Greece
and
Romania.

Those
markets
will
be
followed
by
the
Middle
East
and
Africa,
India
and
Asia
Pacific,
and
South
America
in
late
2024,
the
companies
said.

The
expansion
plans
do
not
currently
include
distribution
in
the
U.S.,
Stellantis
CEO
Carlos
Tavares
said
Tuesday
following
a
press
conference
in
Hangzhou,
China,
where
Leapmotor
is
based.
That’s
due,
in
part,
to
new
American
tariffs
on
China-made
EVs,
Tavares
said,
citing
among
other
reasons
as
well.

The
Biden
administration
on
Tuesday
announced

stiff
new
tariff rates
on
billions’
worth
of Chinese
imports,
including
quadrupling
tariffs
on
imported
Chinese
electric
vehicles,
from
25%
to
100%. 

“There
is
very
limited
Chinese
offering
in
the
U.S.
market,
so
it
is
not
a
priority
for
us,”
Tavares
said. “There
is
a
lot
in
Europe
because
we
see
Europe
has
a
very
different
approach
for
this
problem.
…
It
looks
like
the
U.S.
is
going
for
a
very
strong
protectionism.
Whereas,
for
the
time
being,
I
see
Europe
is
keeping
the
market
reasonably
open.”

The
joint
venture’s
expansion
plans
include
at
least
six
EVs
by
2027,
according
to
a
presentation
by
Stellantis
and
Leapmotor.
The
cars,
initially
budget
vehicles,
are
expected
to
be
complementary
to
Stellantis’
current
vehicle
lineup,
the
companies
said.

The
announcement
comes
amid
increasing
geopolitical
tensions
surrounding
China-made
electric
vehicles
in
the
U.S.,
Europe
and
other
regions.
Many
in
and
around
the
automotive
industry
fear
the
less-expensive,
China-made
vehicles

will
flood
the
markets,
undercutting
domestic-produced
EVs.

“From
a
Stellantis
perspective,
our
position
is
we
compete.
We
compete
with
the
Chinese
carmakers
and
we
compete
as
strongly
as
we
can
because
it’s
the
best
way
to
learn.
It’s
the
best
way
to
stay
fit
for
the
global
race
in
which
we
are
now
part
of,”
Tavares
said.

Tavares
said
Tuesday
that
the
Chinese
carmakers,
which
he

previously
called
Stellantis’
greatest
competitors,
are
expected
to
rapidly
grow
internationally
—
with
or
without
joint
venture
assistance.

“Whether
I
like
it
or
not,
with
me
or
without
me,
Leapmotor
would
have
been
in
Europe
anyway
…
perhaps
not
as
fast,
perhaps
not
as
strongly
but
they
would
have
gone
to
Europe,”
Tavares
said. “What
I
am
doing
is
just
trying
to
be
opportunistic
against
a
dynamic
that
has
been
created
by
the
Chinese
carmakers.”

Chinese
companies
accounted
for
8%
of
Europe’s
all-electric
vehicle
sales
as
of
September
and
could
increase
their
share
to
15%
by
2025,
the European
Union
said
in
October
2023. The
EU
believes
Chinese
EVs
are
undercutting
the
prices
of
local
models
by
about
20%
in
the
European
market.

The
influx
of
Chinese
EVs
has
spurred
the
European
Union
to
launch
government
support
for
the
industry.

“The
partnership
between
Leapmotor
and
Stellantis
demonstrates
a
high
level
of
efficiency,
opening
a
new
chapter
in
the
global
integration
of
China’s
intelligent
electric
vehicle
industry,”
Leapmotor
founder,
chairman
and
CEO
Jiangming
Zhu

said
in
a
release. “We
believe
that
this
cooperation
can
give
Leapmotor
a
boost
to
become
a
respected
world-class
intelligent
electric
vehicle
company.”

The
companies
declined
to
disclose
sales
volume
expectations
for
Leapmotor
vehicles
sold
through
Stellantis’
sales
network,
which
is
expected
to
grow
from
200
locations
to
up
to
500
by
2026.
Leapmotor
reported
deliveries
of
144,155
vehicles
in
2023,
a
roughly
30%
increase
from
the
previous
year.

Stellantis
owns
51%
of
the
joint
venture
with
Leapmotor,
announced
earlier
this
year
and
including
an
investment
of

1.5
billion
euros
in
Leapmotor
for
a
roughly
21%
stake
in
the
company.

As
part
of
the
deal,
Stellantis
has
exclusive
rights
for
export
and
sale,
as
well
as
for
manufacturing
Leapmotor
products
outside
of
Greater
China.