China's Leapmotor will build small EV in Polish Stellantis plant, report says

Leapmotor electric vehicles will be built at partner Stellantis' Tychy plant in Poland, two people close to the matter told Reuters.

Output of Leapmotor's T03 battery-electric minicar could start before the end of June, using the semi-knocked down (SKD) technique involving turning partially assembled kits into finished vehicles, one of the people said.

Tychy will ensure low costs for a product designed to be affordable for a broad range of customers, the second source said. Both sources declined to be identified because the details are not public

Stellantis chose the site for its partner as part of a joint venture the companies agreed last year.

Located in the south of Poland, Tychy is an historic Fiat facility. The plant makes several Stellantis vehicles, including gasoline and hybrid versions of the Fiat 500, the Fiat 600, the Jeep Avenger and the new Alfa Romeo Milano, scheduled to be unveiled next month.

A Stellantis spokesperson declined to comment. Leapmotor representatives could not reached for immediate comment.

With a range of 280 km (174 miles), the T03 is already being imported into some European markets, including France, with prices starting at around 20,000 euros ($21,642). The model offers to help Stellantis boost its low-cost EV offerings and compete with Renault's Dacia Spring and BYD's Seagull.

Stellantis agreed in October to buy a 21 percent stake in Leapmotor for €1.5 billion. As part of the deal the two carmakers also announced a joint venture, giving Stellantis exclusive rights to build, export and sell Leapmotor products outside China, a first for a legacy Western automaker.

A Chinese regulator this month approved the joint venture, in which Stellantis has a 51 percent stake.

Leapmotor said this month that the joint venture's executive team is in place and that sales of another model, the C10 SUV, the first Leapmotor EV designed specifically for overseas markets, will start soon in Germany, France, Italy and Spain.

Chinese automakers are bringing a number of lower-cost EV models to Europe, which has spurred a race by legacy European automakers to develop more affordable electric vehicles.

Trade tensions are running high between China and the European Union, which is investigating whether Chinese EV makers benefit from unfair government subsidies.

Chinese manufacturers are also looking to build assembly plants in Europe. BYD has announced it will build a plant in Hungary, while rival Chery Auto is assessing options for a similar investment, including possibly in Italy and Spain.

Stellantis CEO Carlos Tavares said last month that the automaker could build Leapmotor-based electric vehicles in Europe, North America or other markets where it needs competitively-priced models to compete with Chinese EV makers.

Stellantis is still also evaluating whether to build Leapmotor EVs larger than the T03 at its plant in Mirafiori plant in Turin, sources told Automotive News Europe.

Stellantis is considering building up to 150,000 Leapmotor EV models a year in Mirafiori, Automotive News Europe reported last month. The plant currently produces low volume Maserati models and the niche Fiat 500e battery-electric hatchback.