China FAW Group’s potential equity investment in Leapmotor is reportedly nearing its final stages, with a signing expected as early as this year. Leapmotor founder, chairman, and CEO Zhu Jiangming has confirmed ongoing discussions but stated that the company will not relinquish actual control.
The news follows earlier reports of FAW’s interest in acquiring a stake in Leapmotor, which intensified after the two companies signed a strategic cooperation memorandum in March. Currently, Stellantis Group holds approximately 21.26% of Leapmotor, making it the largest single shareholder. However, Zhu Jiangming and the founding team collectively control about 25.8% of the shares through direct and indirect holdings, securing their actual control.
According to sources quoted by Chinese media NBD, FAW’s investment work is now in its concluding phase. The initial planned stake for FAW is around 5%, a reduction from earlier reports suggesting an acquisition of approximately 10% of Leapmotor’s shares.
Leapmotor’s robust financial performance in the third quarter of 2025 suggests it is not under urgent pressure for financing. The company reported a revenue increase to 19.45 billion yuan (2.72 billion USD), marking a 97.3% year-on-year growth and a 36.7% increase from the second quarter of this year. Leapmotor Vice President Li Tengfei projected that fourth-quarter profitability would align with the third quarter, with an anticipated net profit of 5 billion yuan (700 million USD) for next year.
For China FAW Group, the investment comes amidst considerable pressure to accelerate its new energy vehicle (NEV) transformation. Despite its “All in NEV” strategy, FAW’s NEV sales currently account for only about 10% of its total sales. In November, FAW sold 306,000 vehicles, with its self-owned brand NEVs contributing 35,500 units. This contrasts with peers like Changan Auto, which sold 283,000 vehicles in November, with NEV sales reaching 125,000 units, a 23% year-on-year increase.
Technical cooperation between FAW and Leapmotor is already underway. Following their strategic partnership in March, the first joint project – an overseas model for FAW’s Hongqi brand – was launched in April. Mass production for this model is expected in the second half of next year for international markets.
Zhu Jiangming’s latest statements suggest FAW will primarily act as a financial investor. He reiterated, “Even if FAW or other automakers invest in Leapmotor, it will be more as a shareholder in the role of a relative investor. This is something we must adhere to and will certainly achieve.”
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