Chinese electric vehicle maker Leapmotor Co. Ltd. has set an ambitious target of selling 4 million vehicles annually, as its founder argues that new energy vehicle companies need to achieve far higher volumes than traditional automakers to survive long-term consolidation in the industry.

Zhu Jiangming, founder and CEO of Leapmotor, told media at the Munich Motor Show that EV companies will need to reach 4 million units annually to remain viable, significantly higher than the 1 million threshold previously considered necessary for traditional automakers. The executive cited intensifying competition and higher industry concentration as key factors driving up survival thresholds.

The target represents a massive scaling challenge for Leapmotor, which delivered 328,900 vehicles globally in the first eight months of 2025 and is targeting 500,000 units for the full year. The company has maintained its position as the top-selling new energy vehicle startup in China for six consecutive months through August.

Zhu emphasized that achieving the 4 million target would require roughly equal contributions from domestic and international markets, with overseas sales potentially exceeding domestic volumes to establish genuine global influence.

Domestic Market Strategy Built on Product Matrix

Leapmotor's domestic growth strategy centers on expanding its "value pyramid" across multiple vehicle series while maintaining competitive pricing. The company's current success stems from its C-series SUV lineup (C10, C11, C16), which despite similar positioning has achieved differentiated market appeal through precise sizing and configuration variations.

The automaker is preparing to launch its premium D-series and entry-level A-series next year, alongside personalized offerings like the newly unveiled Lafa 5 sports coupe. This multi-tier approach aims to capture 200 million units of the targeted 4 million from the domestic market alone.

Current monthly sales of 50,000-60,000 units from the B and C series provide a stable foundation, while planned additions could contribute an additional 100,000-130,000 monthly units across all segments. The A-series is expected to target lower-tier markets with higher volumes, while the D-series will focus on brand elevation and premium positioning.

European Expansion Accelerates Through Stellantis Partnership

International markets represent Leapmotor's most significant growth opportunity, with overseas deliveries surging 1,762% in the first half of 2025 to over 30,000 units. The company ranks first among Chinese EV brands in Germany's pure electric vehicle segment as of August.

Leapmotor's partnership with Stellantis N.V. has rapidly established over 700 international sales and service points, complementing 900+ domestic locations. The collaboration has enabled integration into European leasing systems, with the T03 model available for 99 euros monthly, significantly lowering consumer barriers to trying new brands.

Range-extended variants like the B10 EREV are gaining traction in Southern European markets where charging infrastructure remains limited. The company plans to introduce the Lafa 5 to European markets next year, reflecting localized product development based on regional feedback.

Financial Performance Improves Amid Volume Growth

Leapmotor's aggressive pricing strategy, while pressuring margins initially, is showing improved financial results as volumes scale. Gross margins jumped to 14% in the first half of 2025, approaching industry norms of 15-20%, while net losses have narrowed significantly.

The company maintains high customer service standards with 100% response rates to consumer complaints and 74% resolution rates, earning top rankings on consumer protection platforms. This approach contrasts with competitors' focus on advanced technology marketing, instead emphasizing reliable products and transparent pricing.

While the 4 million unit target remains ambitious given current market dynamics, Leapmotor's systematic approach to market expansion and improving unit economics position it among the few Chinese EV startups with potential to achieve global scale.