Leapmotor Declares ‘New Force’ Era Over: What This Means for the Chinese EV Market

Is the era of the hyper-agile, yet perpetually fragile, Chinese EV ‘new force’ finally concluding? At its 10th-anniversary milestone, Chinese automaker Leapmotor (or 零跑汽车) sent shockwaves through the industry by announcing it will abandon the ‘new force’ (新势力) moniker. Instead, CEO Zhu Jiangming aims for a far grander title: a ‘world-class enterprise worthy of respect’ built on leapmotor sales sustainability. For Western investors and legacy automakers watching the Middle Kingdom’s automotive revolution, this signals a critical maturation point in the world’s most competitive EV landscape.

The company’s performance validates this pivot. In 2025, Leapmotor is on track to nearly hit 600,000 annual sales, making it the top seller among the so-called new forces, and it is projected to achieve its first full-year profitability. This is no longer just a startup chasing subsidies; it’s a volume player executing a sophisticated strategy.

H2: The Strategic Pivot: From Startup to ‘World-Class’

The internal letter from Zhu Jiangming was clear: the mindset must shift from constant crisis mode to disciplined, global competition. This ambition is underpinned by tangible achievements:

• Sales Velocity: 2025 sales are projected near 600,000 units, with overseas deliveries reaching approximately 60,000, leading the pack of former ‘new forces.’
• Profitability Milestone: Q3 2025 marked the second consecutive profitable quarter, with the full year on track to deliver net profit. This financial stability is the core differentiator from peers still burning cash.
• Global Footprint: The partnership with Stellantis is maturing, with Leapmotor International expanding across 35 overseas markets and establishing over 800 overseas service points, leveraging Stellantis’ global network.

H3: The Secret Sauce: Full Vertical Integration

Leapmotor attributes its success—specifically its reputation for being ‘good but not expensive’—to deep internal control over production. Zhu highlighted that maintaining 65% self-production of core components allows them to control costs aggressively.

This self-reliance translates directly into market advantage:

• Cost Control: Self-manufacturing of components allows them to pass on a 10% margin benefit to the consumer while maintaining a healthy 14%-15% gross margin on the vehicle itself.
• Product Success: New models like the B10 and updated C10 are hitting significant sales marks (C10 reaching 20,000 units/month), proving their ‘value-for-money’ positioning resonates in a brutal price war environment.

H2: Reading the Signals: What This Means for Western OEMs

For car executives in Detroit, Wolfsburg, or Paris, Leapmotor’s evolution is a direct challenge. The key takeaway is that Chinese EV makers are transitioning from technological parity to global scale and financial sustainability.

The primary threat to Western automakers is now twofold:

1. Cost Discipline: Western companies must contend with rivals like Leapmotor who have proven they can achieve profitability while pricing aggressively, thanks to vertical integration.
2. Global Execution via Partnership: The Stellantis JV is proving effective, delivering vehicles like the C10 to European markets and undercutting rivals on price. This model—a Western distribution behemoth enabling an agile Chinese tech firm—is a serious competitive threat.

The next major benchmark is Leapmotor’s 2026 goal: 1 million annual sales, fueled by continued innovation and accelerated overseas expansion. See our analysis on the role of Chinese EV exports in the EU market for more context.

H3: Caution Amid Success: The ‘Eggshell’ Mentality

Despite hitting cumulative sales milestones (now over 1.2 million since inception), Zhu cautioned against complacency, emphasizing the need for a daily sense of crisis. This recognition that the market is not settled—even as they surpass former leaders like Li Auto in the ‘new force’ rankings—is vital. The competition is shifting from a ‘price war’ to a ‘value war,’ demanding constant technological iteration.

Investor Takeaway: Leapmotor is evolving from a disruptive startup into a standardized, formidable global player. Western players should view their aggressive cost structure and validated global sales channels—especially through partnerships—as the new baseline for competition.