Leapmotor: Aspiring to Be an “Apple,” but Doing the Work of an “Uniqlo” and a “BYD”?
Hello everyone, I’m your financial journalist. Today, we’re talking about a car company that’s experiencing some identity anxiety—Leapmotor.
If you’ve been following the new energy vehicle market recently, you might have noticed a interesting shift in their approach. Zhu Jiangming, the founder of Leapmotor, used to compare the company to Uniqlo, emphasizing their focus on offering “affordable, high-quality products.” However, recently, he’s stated that Leapmotor aims to become the “Apple” of the automotive industry.
That’s quite a big leap! Uniqlo is known for its basic T-shirts, while Apple is a leader in creating a sophisticated ecosystem. How can these two companies be considered part of the same family?
Don’t worry, this news article delves into a lot of information. It not only explains how Leapmotor makes money and sells its cars but also reveals a very clever (and somewhat “patchwork”) philosophy for survival in the industry. Let’s break down the article into five key points to make it easier to understand.
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1. From “Uniqlo” to “Apple”: A Shift in Brand Positioning
Core Logic: Leapmotor used to rely on “cost-effectiveness” to survive, but now it wants to earn profits through “brand premiumization.”
Zhu Jiangming made a famous statement at a press conference: Apple didn’t invent the touchscreen or the MP3, but it combined these technologies perfectly to create an ecosystem. Leapmotor wants to do the same with its products.
- Past Leapmotor (Uniqlo Model): In the past few years, Leapmotor’s competitive advantage was its pricing. They offered the same features at lower prices. This strategy helped them grow rapidly, with nearly 600,000 cars delivered in 2025 and profitability achieved.
- Current Leapmotor (Apple Model): However, there’s a limit to how much you can save on price. No matter how many cars you sell, if you only make a small profit per car, you won’t make much money. Zhu Jiangming realized that to increase profits and strengthen the brand, they need to create a premium experience that customers are willing to pay for.
- The Dilemma: It’s like a fast-food restaurant suddenly claiming to open a Michelin-starred restaurant. Will customers believe it? This is Leapmotor’s biggest challenge: how to use the reputation built with its “Uniqlo” brand to justify its higher prices?
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2. The Truth in the Financials: Large Scale, but Hard Times Making Money
Core Logic: Selling a lot of cars doesn’t necessarily mean making a lot of money. Rising raw material costs and the strategy of “selling volume at the expense of profit” are squeezing profits.
Many people think Leapmotor is doing well since it’s profitable, but the numbers don’t show that. In 2025, they made 540 million yuan, but that’s only about 1,000 yuan per car on average, considering the nearly 600,000 vehicles sold. Although sales increased by 70% in the first eight months of this year, the gross margin dropped from 14.1% to 11.7%.
- Reasons for the Decline in Profit:
1. Rising Costs: The cost of batteries and chips has increased, but car prices can’t be raised too much, or no one will buy them.
2. Product Mix: The majority of sales come from mid-to-low-end models, which have lower margins.
3. Competitive Market: The domestic car market is highly competitive, with many companies cutting prices to gain market share.
- The CEO’s Perspective: CFO Li Tengfei admitted that the initial target of 5 billion yuan in net profit for the year is difficult to achieve, and they expect to make around 3 billion yuan instead. This indicates that Leapmotor is currently in a phase of “using profits to expand its scale.”
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3. Finding Support: FAW and Stellantis as “Bodyguards”
Core Logic: Leapmotor knows it can’t do it all on its own, so it’s partnered with two powerful companies.
Leapmotor has formed a strategic alliance with FAW (First Automobile Works) and Stellantis, creating a “triangular partnership” where Leapmotor provides technology and the partners provide resources.
- Domestic Support: FAW (FAW):
FAW has invested in Leapmotor and acquired a stake in the company. More importantly, Leapmotor sells its battery, motor, and electronic control systems to FAW’s factories, saving significant capital and research costs.
This arrangement allows Leapmotor to focus on developing technology while FAW leverages its existing infrastructure.
- International Expansion: Stellantis (Stellantis): This multinational company, which owns brands like Jeep and Maserati, has acquired a 20% stake in Leapmotor and established a joint venture called Leapmotor International. Leapmotor’s technology is used in Opel’s new vehicles, and production has started in Spanish factories.
- Benefits: Leapmotor can use European brands to sell its cars overseas and avoid tariffs. This partnership helps Leapmotor expand its market presence while reducing costs.
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4. The Paradox of Technology Policy
Core Logic: Leapmotor is generous with its existing customers and open to the industry, but cautious with its competitors.
At the press conference, four new technologies were announced. The most surprising aspect was Leapmotor’s approach to technology:
- Openness vs. Conservatism: Unlike Apple, which keeps its technology closed to competitors and doesn’t offer free upgrades, Leapmotor offers free upgrades to existing customers with lidar-equipped cars and opens its CTC 3.0 battery technology to the industry. This strategy aims to build a good reputation and establish industry standards.
- Self-Reliance vs. Outsourcing: While Leapmotor is open with others, it remains cautious with its own core technologies, focusing on self-development to maintain cost competitiveness, similar to BYD.
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5. The Future Strategy: A Second Brand and Profitable Robots
Core Logic: Leapmotor wants to challenge the luxury market with a new, high-end brand and a practical approach to AI.
They plan to launch a second brand in 2027, positioning it as a “mobile space” solution that encompasses cars, homes, and offices. This move is a way to show off their technological capabilities and future potential.
- Risks: If the new brand fails to sell well, Leapmotor may remain stuck in its “Uniqlo” role and fail to achieve its “Apple” aspirations.
- Robots: Leapmotor is focused on practical robots that can generate profits, not just flashy models. They have developed robots but didn’t showcase them at the conference, indicating a pragmatic approach to AI.
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Journalist’s Conclusion: Leapmotor’s “Patchwork” Survival Strategy
Leapmotor is a company that’s blending different elements in a clever way:
1. Brand: They aspire to be like Apple, but their current focus on cost-effectiveness and scale makes them more like Uniqlo.
2. Manufacturing: They want to be as “light” as Apple by outsourcing, but they rely on self-development for cost control, similar to BYD.
3. Partnerships: They partner with giants to leverage their resources and expand their market reach.
4. Technology: They are open with others but cautious with their core technologies.
Can Leapmotor become the “Apple” of the automotive industry?
It’s unlikely in the short term. Apple’s brand image is built on years of luxury and a closed ecosystem, while Leapmotor’s foundation is affordability. However, their strategy is smart: they’re using their cost-effective approach to build scale and cash flow while developing their own technologies to reduce costs. They aim to create a high-end brand that can compete with Apple’s.
For consumers, this means Leapmotor will continue to offer good-quality cars at affordable prices. For investors and industry observers, it’s a risky but promising journey. Leapmotor is trying to break the myth that low prices equate to low profits, a path that’s both challenging and full of potential.
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That’s the translated analysis of the Chinese news. If you have any questions or need further clarification, feel free to ask!