It is reported that China FAW and Leapmotor have officially signed a "Memorandum of Understanding on Strategic Cooperation" in Changchun, and the two sides have announced that they will jointly develop new energy passenger vehicles. This cooperation instantly attracted the attention of industry insiders and consumers, and in the current highly competitive new energy vehicle market, the cooperation of the two major car companies will undoubtedly bring new variables and opportunities.
New energy vehicle market: fierce battle is in full swing, unlimited potential
In recent years, the new energy vehicle market has shown explosive growth. The improvement of environmental awareness, the strong support of policies and the continuous progress of technology have jointly promoted new energy vehicles from the fringe to the mainstream. From a global perspective, countries have formulated a ban on the sale of fuel vehicles timetable, opening up a broad space for the development of new energy vehicles. The domestic market is also hot, with new energy vehicle sales continuing to climb in 2024, and the penetration rate continues to increase, with many consumers including new energy vehicles in their preferred list of car purchases.
According to the data of the Passenger Car Association, from February 1 to 23, 2025, the retail sales of new energy passenger vehicles reached 445,000 units, a year-on-year increase of 77%; The wholesale of new energy passenger car manufacturers nationwide was 517,000 units, a significant increase of 128% year-on-year. BYD, Xiaopeng and many other car companies have performed well, and the heat of the new energy vehicle market can be seen. The industry generally predicts that China's NEV sales will increase by 20% year-on-year to 13.3 million units in 2025, with a penetration rate of nearly 57%, and the market size will further expand.
However, behind the boom, the new energy vehicle market is also facing many challenges. The charging infrastructure is not perfect, and "range anxiety" is still a pain in the hearts of consumers; The battery recycling system has not yet been perfected, which affects the sustainable development of the industry; The market competition is fierce, and car companies need to continue to innovate and improve their product strength in order to stand out from the competition.
China FAW and Leapmotor: Complement each other's advantages and work together
As the mainstay of China's automotive industry, FAW has always been at the forefront of the industry since its establishment in 1953. It has profound technical accumulation, complete manufacturing system and extensive sales network, and has made great achievements in the field of traditional automobiles. However, under the wave of new energy vehicles, although China FAW is actively deploying, it is also facing the pressure of transformation, and it is urgent to accelerate breakthroughs in the field of new energy and intelligence.
Leapmotor is a rising star in the field of new energy vehicles. Since its establishment in 2015, Leapmotor has adhered to global self-development, with the proportion of self-developed and self-manufactured core components of the whole vehicle as high as 65%, covering key areas such as "three electrics" and intelligent systems. In 2024, Leapmotor will deliver nearly 300,000 vehicles, a year-on-year increase of more than 100%, ranking firmly in the leading camp among new car companies, showing strong development momentum and innovation capabilities.
Figure: China FAW joins hands with Leapmotor, and the field of new energy passenger vehicles has made waves again (Source: Caixin News)
The cooperation between the two parties can be described as complementing each other's advantages. In terms of cooperation on new energy passenger vehicles and parts, technology integration will become a major highlight. The combination of FAW's traditional automobile manufacturing process and Leapmotor's intelligent electric vehicle technology is expected to collide with brilliant sparks. For example, in terms of battery technology, the integration of R&D capabilities between the two parties is expected to improve the range and safety of new energy vehicles; Cooperation in the field of intelligent driving will bring consumers a more advanced and reliable driving assistance experience. At the same time, through joint procurement and joint research and development of parts, the supply chain is optimized, costs are reduced, and product cost performance is improved.
In addition, the two parties will also explore the feasibility of capital cooperation. If in-depth cooperation at the capital level is reached, it will realize the synergy of resources in the whole industry chain, jointly invest in the construction of production bases and R&D centers, integrate technology, talents and market resources, and enhance the comprehensive competitiveness in the new energy vehicle market.
The cooperation is of far-reaching significance, and the influence of the industry is geometric
For China FAW, joining hands with Leapmotor is an important strategic layout. With the help of Leapmotor's technological advantages in new energy and intelligence, it accelerates its own transformation, rapidly improves its product competitiveness, and consolidates its leading position in the automotive industry.
Through the cooperation with FAW in China, Leapmotor's brand influence will be further enhanced. After being recognized by Stellantis Group, the cooperation with China FAW is undoubtedly a reaffirmation of Leapmotor's technology and development potential, which will help it expand its market share and realize the two-wheel drive development strategy of "vehicle manufacturing + tier1 business".
From the perspective of the industry, the cooperation between China FAW and Leapmotor will inject new vitality into the new energy vehicle market, promote technological innovation and industrial upgrading, and accelerate the reshuffle of the industry. Other car companies may follow suit and seek cooperation opportunities to promote the integration and coordinated development of industry resources, and jointly promote the new energy vehicle industry to new heights.
