China’s state-owned automaker FAW Group has formally agreed to invest 3.74 billion yuan (about RM2.85 billion) into Leapmotor, the new energy vehicle (NEV) maker backed by Stellantis, as part of a broader collaboration between the two companies. The move was sealed with an investment and cooperation agreement signed in Hangzhou on 28 December 2025, and
At the heart of the deal, FAW Equity Investment (Tianjin) will purchase just over 74.8 million shares in Leapmotor at 50.03 yuan (around RM38.20) per share, giving it a 5 per cent equity stake and designating it as a strategic shareholder in the electric carmaker. In addition to the equity investment, FAW Qixin Power will work alongside Leapmotor on the development of plug-in hybrid and extended-range electric vehicles, signalling a long-term technical partnership.
The financial breakdown of FAW’s investment shows that around half of the funds will be channelled into research and development, with the remaining amount split evenly between working capital and initiatives to grow the brand’s sales and aftersales network. This marks another milestone in the companies’ relationship, which first drew attention in March 2025 when a memorandum of understanding for NEV cooperation and parts supply chain development was signed. Rumours of FAW acquiring a 10 per cent stake later that year were publicly denied at the time.
FAW’s involvement comes against the backdrop of Leapmotor’s rapid rise. Stellantis became a major stakeholder in late 2023 with a EUR 1.5 billion (about RM7.06 billion) investment for a 20 per cent share, while Leapmotor itself was one of the few Chinese EV startups to report net profit in 2025, with annual sales nearing 600,000 units. The company’s ambitions are global, with plans to hit 1 million cars sold worldwide next year and to begin manufacturing in Spain.
Leapmotor’s chairman, Zhu Jiangming, has confirmed that a new model co-developed with FAW will be unveiled in 2026, marking the first fruit of the partnership between a state-owned titan and a private EV innovator. In addition, Leapmotor is preparing to launch two flagship models — the D19 SUV and the D99 minivan — with their extended-range versions using 80.3 kWh batteries, further broadening its lineup as it expands beyond China.