The company has raised its 2025 sales target to 500,000 units and is tipped to deliver its first annual profit
Zhejiang Leapmotor Technology, once a fringe player in China’s electric vehicle (EV) industry, is beating all its start-up rivals by sales and stock gains this year and analysts say there is more to come.
The carmaker’s Hong Kong-listed shares have doubled since January – outpacing better-known peers XPeng and Xiaomi – and have surged more than 200 per cent from a low in August last year. The company has increased its 2025 sales target to 500,000 units, up from around 290,000 a year earlier, and is tipped to deliver its first annual profit.
Ten-year-old Leapmotor has won over investors by outcompeting its peers in price, principally by producing a large proportion of components in-house. A big driver behind that is the electronics and software background of co-founder Zhu Jiangming, who has helped drive the company’s R&D efforts.
“Leapmotor’s price competitiveness is remarkable, they’re offering large vehicles at mass-market prices, thanks to roughly 70 per cent vertical integration,” said Xiao Feng, co-head of China industrial research at CLSA Hong Kong. “We see strong upside potential driven by a robust product cycle and exceptional capital efficiency.”
