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Daniel Ren

FAW Group, mainland China’s oldest carmaker, plans to acquire a 10 per cent stake in Stellantis-backed electric vehicle (EV) maker Leapmotor, as the state-owned automotive giant looks to enhance its competitiveness in the segment, according to Cailian, a Shanghai-based financial news outlet.
The investment would pave the way for the two companies to jointly develop new EV models, fine-tune supply-chain management and bolster overseas expansion, the report said.
Leapmotor declined to comment, while FAW could not be immediately reached for comment on Wednesday.
Two sources with knowledge of FAW and Leapmotor’s thinking said the companies were putting the final touches on an investment agreement that would benefit both parties by controlling costs and boosting research and development.

The deal would make FAW China’s first state-owned carmaker to own a stake in an EV start-up.
“State-owned automotive giants lag behind their privately owned rivals in terms of electrification and new EV model development,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “The equity investment is likely to spawn imitators as more state-owned companies look to enlist emerging EV companies to improve their technology and production efficiency.”
In July, deliveries of EVs – pure electric and plug-in hybrid cars – jumped 12 per cent to 987,000 units on the mainland, accounting for 54 per cent of overall car sales, according to the China Passenger Car Association.
FAW, the Chinese partner of Volkswagen and Toyota, delivered 28,500 EVs, 11.3 per cent of its total sales last month.
In March, FAW and Leapmotor signed a preliminary pact to jointly develop EVs and collaborate on supply-chain procurements.
Leapmotor, founded in 2015 by Zhu Jiangming, a veteran electronics engineer who also co-founded surveillance giant Dahua, is one of the big winners in the mainland’s EV industry this year.
Last month, the company delivered 50,129 vehicles for its third straight monthly sales record. In the first seven months of 2025, it sold a total 271,793 vehicles, up 150 per cent year on year.
In October 2023, Leapmotor received a US$1.6 billion investment from Stellantis, formerly Fiat Chrysler, giving the European carmaker a 20 per cent stake in the Chinese EV start-up.
Zhu, who is also the CEO of Leapmotor, said in late July that the company’s goal was to sell 4 million units a year, without elaborating on the time frame.
The company is known for its smart EVs priced at around 100,000 yuan (US$13,923), attracting thousands of young motorists willing to embrace new self-driving and in-car entertainment technologies.
FAW, China’s oldest carmaker and once a symbol of the Communist Party’s manufacturing might, is actively promoting green and intelligence-based development of the vehicle industry, its chairman Qiu Xiandong said in May 2024.
Its iconic Hongqi, or Red Flag, car was once viewed as a symbol of the mainland’s automotive sector.
Mao Zedong, one of the key founders of the People’s Republic, oversaw the establishment of the firm in 1953 with the help of the former Soviet Union. Former president Jiang Zemin spent six years working for FAW between 1956 and 1962, rising from an engineer to chief manager of the group’s power unit.


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The investment, which is yet to be finalised, would lead to joint development of EVs and bolster overseas expansion, report says


The investment, which is yet to be finalised, would lead to joint development of EVs and bolster overseas expansion, report says.


FAW, China’s oldest carmaker, eyes 10% of Leapmotor to boost stake in EV surge

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The investment, which is yet to be finalised, would lead to joint development of EVs and bolster overseas expansion, report says

The investment, which is yet to be finalised, would lead to joint development of EVs and bolster overseas expansion, report says