Leapmotor Profit Signals Brazil EV Production Push

The Leapmotor Stellantis partnership delivered a landmark result Monday as the Chinese electric vehicle maker reported its first-ever annual profit, becoming only the second Chinese EV startup after Li Auto to achieve full-year profitability. Leapmotor posted net income of 540 million yuan ($77 million) for 2025, reversing a loss of 2.82 billion yuan ($409 million) the previous year, on the back of sales that more than doubled to nearly 600,000 vehicles. The Rio Times, the Latin American financial news outlet, examines what the results mean for Brazil’s electrification push as the company prepares to begin local production.

Leapmotor Stellantis Results: Revenue Doubles

Revenue surged 101.3% to 64.73 billion yuan ($9.4 billion), driven by explosive delivery growth across Leapmotor’s expanding lineup. The company shipped 596,555 vehicles globally in 2025, a 103% increase that made it the top-selling Chinese EV startup by volume. Gross margin improved to a record 14.5%, up 6.1 percentage points from 8.4% in 2024, reflecting cost discipline, an optimized product mix, and additional revenue from carbon credit trading and spare parts. The company generated 7.82 billion yuan ($1.1 billion) in free cash flow and ended the year with 37.88 billion yuan ($5.5 billion) in liquid assets.

Three new models launched during the year — the B10 crossover, the B01 sedan, and the B05 hatchback — broadened the range beyond the C-series SUVs that initially established the brand. Leapmotor’s shares rose 5.2% in Hong Kong on Tuesday following the results, and Citi analysts noted the company has set ambitious 2026 targets: one million vehicle deliveries, net profit of 5 billion yuan ($724 million), and a gross margin of 15%.

International Expansion Accelerates

The Leapmotor Stellantis joint venture — in which Stellantis holds 51% and controls all export, sales, and production activities outside China — has been central to the international push. Leapmotor exported 67,052 vehicles in 2025, ranking first among Chinese EV startups, and cumulative exports surpassed 100,000 units by early 2026. The company now operates 900 sales and after-sales outlets in 40 countries, with more than 800 dealers already active in Europe alone. European revenue reached 5.6 billion yuan ($812 million).

In Spain, Leapmotor is developing a CKD assembly project to produce the B10 crossover and B05 hatchback, with production scheduled to start in October 2026. Meanwhile, state-owned FAW Group acquired a 5% stake in Leapmotor for 3.74 billion yuan ($530 million), diluting Stellantis’ holding to 18.99% but adding a powerful domestic partner with deep ties to China’s automotive establishment.

Brazil Production Takes Shape

For the Brazilian market, Stellantis CEO for South America Herlander Zola confirmed that Leapmotor will become the fourth brand assembled at the Goiana Automotive Pole in Pernambuco, joining Jeep, Fiat, and Ram. The plant, which has produced over 2 million vehicles since its 2015 inauguration, will initially handle the C10 electric, C10 REEV (range-extended), and B10 electric in SKD format, though no precise start date has been announced. Zola also confirmed 16 new product launches for the South American region in 2026.

Early market traction is modest: Leapmotor registered 758 units in Brazil in January and February 2026. But Stellantis expects the brand to eventually match the production volumes of established Goiana products like the Jeep Compass and Fiat Toro. For 2026, three additional global models are planned — the A10 crossover, D19 SUV, and D99 minivan — as Leapmotor targets a product range broad enough to compete across segments in markets where EV adoption is accelerating.