Stellantis, here is the flop of the Chinese partner Leapmotor in 2023
The Chinese company of which Stellantis bought 21% sold 72% of the vehicles it hoped for. The startup chosen last October as a partner on the electric car grew by 29% in 2023, less than the average (37%), and loses 4 thousand dollars for every car sold
The latest data from the Chinese Association of Motor Vehicle Manufacturers relating to 2023 photograph a situation that is in some ways similar to that recorded in the West: in fact, the sale of electric cars did not go as predicted in the twelve months just archived.
WHAT HAPPENS TO THE CHINESE ELECTRIC CAR
A situation that was in some ways expected by analysts, following the end of state subsidies (Beijing supported the ecological transition with rivers of money directed both at users and at indigenous manufacturers), but apparently not by the brands that operate in that which is now the main market in the world, who had nevertheless drawn up slightly too optimistic industrial plans for 2023 which were disavowed by the drop in demand.
SALES, HOWEVER, ARE GROWING
It should however be underlined that, while in the West the lack of interest in the electric car was such, over the course of the 12 months just archived (and in particular at the end of the summer), as to have pushed a large number of manufacturers to postpone the debut of models on tap , sales are holding up in China and once again showing the "plus" sign. According to the preliminary data released so far, in fact, sales of electric vehicles, adding battery and plug-in hybrid vehicles, have increased by 38%, reaching 8.88 million units.
WHO IS LEFT WITH THE SMALLEST SLICE OF CAKE
Remarkable data but which makes the pie too small for the high number of startups and former startups that have sprung up like mushrooms in recent times to divide up the desired slices. Underperformers included Nio Inc., Xpeng Inc. and Zhejiang Leapmotor Technology Co. (chosen by Stellantis as a preferred partner).
These brands, among the most aggressive in the undergrowth that has developed at the feet of already established giants (such as Byd, Geely, etc.) have all missed their objectives for the second consecutive year. A situation that is pushing them to reorganize their management teams and, in the case of Nio, to reduce their workforce.
LEAPMOTOR SLOWDOWN
At the end of October Stellantis, a group created from the merger between FCA and PSA, announced its intention to invest 1.5 billion euros to acquire a share of approximately 20 percent of Leapmotor, one of the Chinese companies producing electric vehicles. rapid expansion.
Well, the company on which Carlos Tavares has decided to focus in 2023 has stopped in sales at 72% of electric vehicles which, according to the industrial plan, it should have placed over the past 12 months.
The now former startup still grew by 29% in 2023 (last year it stopped in sales at 56%) but finds itself chasing its rivals, given that growth is still lower than average (37%), he also points out Milan Finance . Furthermore, at present it continues to lose 4 thousand dollars for every electric car sold.
Founded in 2015 by Zhu Jiangming – now also the Group's president and CEO -, Leapmotor (Zhejiang Leapmotor Technologies) has 132 patented technologies and intelligent vehicle factories in Zhe Jiang, China. Unlike many other Asian brands, the company focuses its R&D activity on the development of proprietary software and frameworks aimed at maximizing the performance of smart cars. It is not unusual for startups to lose rivers of money, but now the time is ripe for the fateful change of direction.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/stellantis-ecco-il-floppino-della-partner-cinese-leapmotor-nel-2023/ on Mon, 08 Jan 2024 15:06:07 +0000.