Leapmotor founder and Chairman Zhu Jiangming recently admitted in an interview that building cars requires at least 20 billion yuan, adding "I wouldn't have started if I had known how capital-intensive it would be." The veteran who left security giant Dahua Technology in 2015 to venture into vehicle manufacturing has taken Leapmotor from a marginal brand selling fewer than 100 units per month to a top-tier new force automaker targeting 1 million annual sales. As of June 18, 2026, Leapmotor's cumulative global deliveries surpassed 1.5 million units, with the third 500,000 achieved in just 8 months. Zhu revealed Leapmotor adheres to full-stack in-house R&D, self-developing and self-manufacturing 65% of core components, with 70% of large components sourced within a 20km radius in Jinhua, Zhejiang. The company has raised its 2026 sales target to 1 million units and plans to launch a new independent premium sub-brand positioned above RMB 300,000.
Carmaking Is a 20-Billion-Yuan Gamble
"Building cars requires at least 20 billion yuan." In a recent interview program, Leapmotor founder and Chairman Zhu Jiangming's statement captured the brutal truth of the new energy vehicle industry.
He further confessed: "I wouldn't have started if I had known how capital-intensive it would be." Zhu left Dahua Technology, a leading security company where he had worked for years, in 2015 to formally enter the automotive industry. Looking back on this decade-long journey, he described it as "very rocky" — Leapmotor only recently crossed the break-even point.
This figure is not alarmist. Looking across China's auto industry, SAIC, BYD, Geely, and FAW-Volkswagen are all members of the "million-unit club." Among China's new force automakers, annual sales of 1 million units remain "uncharted territory." Zhu's goal is clear: making Leapmotor the first new force automaker to enter the million-unit annual sales club.
From S01's Disappointment to Full-Matrix Rise
Leapmotor's entrepreneurial history is a classic "comeback story."
In 2019, Leapmotor's first model, the S01, hit the market — a niche-positioned two-door electric coupe. The result was predictable: monthly sales barely exceeded 100 units, with minimal market response. However, the S01's failure gave Leapmotor invaluable experience. Zhu later recalled: "The failure of the S01 contributed a lot to Leapmotor's success today."
The turning point came with a comprehensive product strategy adjustment:
- C-series (C11, C10, C16): Targeting the mainstream family SUV market, serving as the sales foundation
- B-series: Expanding to younger consumer demographics
- D-series: Flagship positioning, with the D19 surpassing 15,000 firm orders within 15 days of its October 2025 launch
- Lafa series: Personalized sports coupes, with the Lafa 5 priced from RMB 92,800 to 116,800, targeting young users
Key milestones:
- First 500,000 deliveries: 64 months
- Second 500,000 deliveries: just 12 months
- Third 500,000 deliveries: just 8 months
- As of June 18, 2026: cumulative global deliveries surpassed 1.5 million units
In mid-November 2025, Leapmotor completed its annual sales target of 500,000 units ahead of schedule. Entering 2026, the growth momentum intensified — July single-month deliveries exceeded 101,267 units, setting a new record for the second consecutive month.
Full-Stack R&D Cost Control Philosophy
At the China Auto Forum on July 22, 2026, Zhu articulated a core viewpoint: in the increasingly homogenized NEV market, only technological innovation enables breakthroughs. Leapmotor's differentiation strategy can be summarized in two keywords: full-stack in-house R&D, extreme value-for-money.
Vertically Integrated Industrial Layout
Leapmotor has built a localized industrial cluster within a 20km radius in Jinhua, Zhejiang, achieving:
- 70% of large components sourced nearby: significantly reducing logistics and manufacturing costs
- 65% of core components self-developed and self-manufactured: covering batteries, e-drive, electronic control, intelligent cockpits, and ADAS
- Gradual extension to traditional components such as compressors, seats, and bumpers
Zhu did the math: Leapmotor's vehicle gross margin is approximately 14%-15%, but because core components self-developed and self-manufactured contribute about 10% gross margin, "this 10% component gross margin is actually given to users" — meaning Leapmotor can price lower at equivalent configurations.
| Dimension | Leapmotor Strategy | Industry Typical Model |
|---|---|---|
| Core component in-house rate | 65% | 20%-40% |
| Industrial cluster radius | 20km | Dispersed layout |
| High-voltage platform coverage | C/B series all 800V SiC | Partial premium models |
| Pricing strategy | Cost-based pricing, sacrificing single-model profit | Brand premium strategy |
Rapid Technology Platform Iteration
Leveraging its independently developed core component advantages, Leapmotor has become one of the industry leaders in 800V high-voltage platforms:
- All C-series and B-series models adopt silicon carbide-based high-voltage solutions
- R&D investment continues to increase: intelligent driving R&D team expanded from 300+ to nearly 500 people
- Fifth-generation electronic/electrical architecture will focus on AI agents integrating vehicle and cloud
- Planning breakthroughs in four key areas at the September 2026 technology launch event
External Empowerment: A New Growth Curve
Notably, Leapmotor has begun exporting core component solutions to external automakers. Partners adopting Leapmotor's platform-based core component solutions can save RMB 1,000-2,000 per vehicle while benefiting from faster delivery cycles and higher quality assurance. This business model is emerging as a new growth driver for the company.
Stellantis-Backed Globalization Acceleration
Leapmotor's rapid growth is inseparable from the strong support of strategic partner Stellantis. Since the joint venture, Leapmotor has entered more than 35 overseas markets, with overseas deliveries exceeding 60,000 units in 2025. From January to April 2026, overseas sales reached 55,126 units, up 165.39% year-on-year.
Global layout highlights:
- Malaysia: Localized production plans underway
- Zaragoza, Spain: Leveraging Stellantis facilities, planned Q3 2026 localized production start
- Target: Gradually increase overseas market sales contribution to 60%
How Far Can the "Uniqlo Model" Go?
Zhu likens Leapmotor's positioning to the "Uniqlo of the automotive industry" — "good but not expensive." This strategy may seem unremarkable, but in the intensely competitive Chinese NEV market, it has demonstrated remarkable vitality.
However, challenges are equally formidable:
- Profitability pressure: Q1 2026 net loss widened to RMB 390 million, with gross margin dropping to 9.4% from 14.9% in the same period last year
- Brand ceiling: The "value-for-money" label has limited appeal in the premium market, which is why Leapmotor plans to launch a sub-brand above RMB 300,000
- Intelligence competition: End-to-end autonomous driving, city NOA, and other capabilities still lag behind the first tier, requiring sustained high-intensity investment
Zhu remains resolute: "We always adhere to a single-brand route and won't create sub-brands targeting different high-end and low-end customer groups." However, there seems to be subtle tension between this statement and the actual plan to launch a new independent sub-brand — perhaps Leapmotor is seeking the balance point between "good but not expensive" and "upward breakthrough."
Regardless of the outcome, Leapmotor's story has become one of the most vivid footnotes in China's automotive industry: in a 20-billion-yuan money-burning game, climbing from monthly sales of 100 to sprinting for 1 million in a decade requires not just money, but profound insight into products, costs, and user needs.
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