---
title: "Leapmotor: Annual sales target raised to 580,000 to 650,000 vehicles"
description: "For the full year, the company aims to achieve a gross margin level of 14% to 15%."
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/33092524.md"
published_at: "2025-08-19T00:30:10.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Leapmotor: Annual sales target raised to 580,000 to 650,000 vehicles

**The following are the** $LEAPMOTOR(09863.HK) **FY25 Q2 earnings call minutes organized by Dolphin Research. For earnings interpretation, please refer to** [**“Hard Roll in the Red Sea Arena, Leapmotor's Bloody Breakthrough!”**](https://longportapp.cn/zh-CN/topics/33084680)**.**

**I. Review of Core Financial Information:**

![IMG_256](https://pub.pbkrs.com/uploads/2025/d9bee0d665a437e03dedd637943586ca?x-oss-process=style/lg)

**Guidance**

City Coverage: It is expected that by the end of 2025, the national city coverage rate will increase to 90%.

Intelligent Driving: Plans to fully implement urban assisted driving by 2025.

Overseas Layout: Plans to establish localized product functions in Europe by the end of 2026.

**Capital Expenditure:**

R&D Investment: Continued investment in R&D in the first half of 2025, with a 100% increase in computing resources.

**Capital Strategy:**

Signed a strategic cooperation agreement with China FAW to jointly develop new energy passenger vehicles and components.

The China Securities Regulatory Commission (CSRC) has approved Zhejiang Leapmotor Technology Co., Ltd. to issue private equity shares.

**II. Detailed Content of the Earnings Call**

**2.1, Key Information from Management Statements:**

**1\. Business Progress**

**1) Overall Performance:**

\- Total deliveries in the first half of 2025 were 221,664 units, ranking first among Chinese startup brands.

\- Deliveries in July reached 50,129 units, ranking first among Chinese electric vehicle startups for five consecutive months, and becoming the only company to deliver over 50,000 units in a single month in 2025.

\- As of June 18, 2025, cumulative deliveries exceeded 800,000 units, with three models launched for 13 months, and global cumulative deliveries exceeding 500,000 units, with a monthly delivery peak of over 54,000 units.

**2) Sales Stores and Channels:**

\- As of the end of June, the sales network covered 286 cities, an increase of 88 cities from last year.

\- Deployed 806 sales stores and 461 service stores.

\- The store volume per store increased by 50% year-on-year in the first half.

\- Operational efficiency increased by 5%, and network operational efficiency increased by 27%.

\- Internal service rapid response rate (within 15 minutes) reached 99.5%, vehicle repair one-time fix rate reached 98.3%, and spare parts supply rate within 48 hours reached 91.5%.

**3) Product Portfolio:**

\- Based on the BE platform, three models under the C platform were revamped, all based on the Leap 3.5 architecture.

\- C11 cumulative sales exceeded 250,000 units, with a new model revamped on July 10, adding over 110 experience items and 125 configuration upgrades.

\- C16 ranked first in the mid-to-large SUV category for eight consecutive weeks.

\- B10 delivered over 10,000 units in the second month after launch.

\- C10 became the first model to deliver over 10,000 units in a single month, receiving five-star safety ratings in China, Europe, and Australia, and multiple international design awards.

\- A high-quality sedan will be launched on July 24, featuring leading body dimensions and a 650 km ultra-long range.

\- The new model launched on May 15, priced at RMB 140,000, equipped with 800V high voltage, LiDAR, end-to-end assisted driving, offering 600 km range, 800V fast charging, and 220 kW high-voltage chassis tuning.

\- It is the only brand applying CTC 2.0 and 800V technology to new six-seat and five-seat SUVs.

**4) Order Volume:**

B01: Over 50,000 orders within 72 hours.

C10: Single-month delivery exceeded 10,000 units. Over 4,000 European users ordered the revamped product in July.

5) R&D:

\- Launched the Leap 3.5 architecture on March 10, using Qualcomm 8650 and 8295 smart combinations.

\- Continued investment in R&D in the first half of 2025, with a 100% increase in computing resources.

\- Deployed end-to-end algorithms Citi, NOA navigation, and plans to fully implement urban assisted driving by 2025.

\- Full-domain natural AR HUD has been applied to the new C11, supporting up to 60-inch AR HUD.

\- Optimized through process components, cooling systems, motors, battery control, etc., in the first half, with a comprehensive efficiency improvement of about 1%.

\- The battery is the first to be recognized by the new national electric vehicle power battery standard, obtaining the most stringent national safety certification a year in advance, and passing 1,029 safety tests and 128 performance tests.

\- Achieved end-to-end assisted driving function in the RMB 120,000 SUV, equipped with LiDAR and Qualcomm 8650 chip.

**5) Overseas Market:**

\- Exported 20,375 vehicles in the first half of 2025, ranking first among startups.

\- Market share in Germany exceeded 1% in June.

\- Over 4,000 European users ordered the revamped product in July.

\- C10 and T03 overseas versions were launched in Hong Kong on June 12, with the 1,500th Leapmotor center globally operating in Hong Kong.

\- As of the end of June, Leapmotor International had over 600 sales outlets in Europe, the Middle East, Africa, and the Asia-Pacific region (550 in Europe, 50 in the Asia-Pacific).

\- Collaborated with Lentus to launch a Leapmotor factory in Malaysia for local assembly projects, with the first C10 rolling off the line on August 7.

**2.2, Q&A Analyst Q&A**

**Q: What are Leapmotor's sales expectations for August and September? Will the company update its full-year sales guidance?**

**A:** Leapmotor expects significant sales growth in August and September. August sales are expected to be significantly higher than July's 50,000 units. The company expects third-quarter sales to reach 170,000 to 180,000 units. Based on the excellent performance in the first half and the outlook for the second half, the company has raised its full-year sales guidance from 500,000 to 600,000 units to 580,000 to 650,000 units.

**Q: Leapmotor's gross profit margin (GP margin) remained high in the first half of the year. What is the outlook for the GP margin in the coming quarters?**

**A:** Leapmotor's overall GP margin exceeded 14% in the first half, reaching a new high. The company believes there were some seasonal factors in the first half and expects the GP margin in the second half to be better than in the first half. With the completion of the transition from old models to new models, the GP margin in the second half is expected to further improve. The company hopes to achieve a GP margin of around 15% when reaching a certain scale.

**Q: In the latest full-year sales guidance, what is the specific proportion or contribution of overseas sales and domestic sales?**

**A:** The overseas sales guidance given at the beginning of the year has not changed much. The new additional guidance mainly comes from the growth in international market sales. Although no specific domestic and export sales ratio is provided, the contribution of the overseas market is an important factor in the company's overall sales guidance increase.

**Q: In the first half of the year, Leapmotor's non-automotive sales revenue was RMB 1.1 billion. How much of this came from carbon credit trading? How was it distributed in the first and second quarters?**

**A:** Leapmotor did monetize some carbon credits in the first half, with transaction amounts ranging from RMB 200 million to 300 million. This revenue fully demonstrates the advantages of cooperation with Stellantis. The carbon credit business is not entirely non-automotive sales, as it has some financial association with automotive sales. The specific distribution details for the first and second quarters are not clearly stated.

**Q: In the context of the automotive industry's regulatory department's anti-"involution" efforts, will Leapmotor's pricing strategy and competitive strategy be modified?**

**A:** Leapmotor highly supports the government's intention to correct industry chaos and promises not to engage in "involution" or out-of-scope competition. The company's pricing and strategy do not need to be modified because its GP margin is relatively high and well-protected. The company formulates pricing based on its technical capabilities and cost control capabilities and always adheres to the 60-day payment principle.

**Q: Leapmotor's revenue is growing rapidly, but the expense ratio is declining. Will the company provide expense ratio guidance or update the expense situation?**

**A:** The company has never publicly provided expense ratio guidance. With the rapid growth of sales and sales revenue, the absolute amount of expenses is rising. However, due to faster revenue growth, the overall expense ratio is expected to continue to decline rapidly. The company believes that with the improvement in sales performance in the second half, the expense ratio will perform better.

**Q: Can you confirm whether Leapmotor plans to start localized production in Europe next year? What are the expectations for overseas sales contributions next year or the year after?**

**A:** Leapmotor plans to achieve localized production in Europe next year, with the B series models being the first to be locally produced in Europe. The company expects overseas sales in Europe to double next year. Given the current unexpected growth in European sales (e.g., over 4,000 units sold in Europe last month), the company is confident in the rapid growth of overseas sales next year.

**Q: Will Stellantis Group continue to purchase Leapmotor's carbon credits next year or the year after?**

**A:** The overall carbon credit purchase in Europe follows its own rules, with a three-year term for the carbon credit pool. Leapmotor believes that in the next one to two years, Stellantis Group and major European OEMs will need to purchase carbon credits. This indicates that carbon credit trading is expected to continue, bringing revenue to the company.

**Q: In the context of the full-year sales guidance being raised to 580,000 to 650,000 units, what is Leapmotor's guidance for the GP margin in the second half and the full year?**

**A:** Leapmotor expects the GP margin in the second half to maintain the level of the first half and is expected to slightly improve. The company hopes to achieve a GP margin of around 15% when reaching a certain scale. For the full-year GP margin, the company hopes to reach a level of 14% to 15%.

**Q: Please introduce the product plans and release schedule for Leapmotor's B05 and D series models.**

**A:** The B05 model will make its global debut at the Munich Motor Show in Germany and is planned to be launched in China in November this year. The D series model, as a commemorative product for Leapmotor's tenth anniversary, will gather the company's ten years of experience and capabilities and is expected to be publicly displayed for the first time in October this year.

**Q: What is Leapmotor's rough guidance or target for next year's sales?**

**A:** The company is confident in challenging the 1 million sales target next year. This target demonstrates Leapmotor's positive expectations for market expansion and product layout, highlighting the company's firm determination and ambition for future sales growth.

**Q: Can you confirm that Leapmotor's localized production in Europe next year will start with B platform models?**

**A:** The company confirms plans to start localized production of B platform models in Europe next year. This will be Leapmotor's first model to achieve localized production in Europe.

**Q: Leapmotor challenges the 1 million sales target next year. What is the approximate sales ratio of the A series, D series, and existing models?**

**A:** The company cannot currently provide a detailed breakdown of sales for all models next year. Existing models such as the B series and C series are expected to grow in sales next year. In addition, the A platform and D platform will be launched next year, and the company expects them to meet sales expectations after launch. The A, B, C, and D platforms will jointly contribute to the 1 million sales, with specific breakdowns to be announced later.

**Q: Considering strategic cooperation and carbon credit income, what is Leapmotor's GP margin for the entire vehicle?**

**A:** The company states that it only discusses the GP margin of the entire business, excluding spare parts or other ancillary businesses. Excluding these revenues, the GP margin for the entire vehicle is about 12%. This indicates that the company maintains healthy profitability in its core automotive sales business.

**Q: Leapmotor increased R&D investment in the first half of the year. What is the subsequent intelligent driving roadmap, especially the timeline for urban navigation assisted driving (NOA)?**

**A:** The company is unwaveringly following a self-developed full-stack intelligent driving strategy and rapidly increasing related investments. It is expected to achieve urban NOA by the end of this year. The company's goal is to become a first-tier player in the autonomous driving field by the end of this year or early next year.

**Q: How is the progress of Leapmotor's B series models in overseas markets? What is the outlook for the profitability of overseas business?**

**A:** The first batch of B10 models has been exported in July and will be exhibited at the European Motor Show in September. Other products of the B series and C series will also be gradually launched globally next year. In terms of overseas profitability, the company does not pursue high profits in the next one to two years but hopes to quickly increase market share and brand influence, and pursue profitability later.

**Q: How will Leapmotor increase new covered cities and counties in the domestic market? How much potential increment is expected from these uncovered cities?**

**A:** The company is deepening existing market coverage and expanding into blank markets, especially focusing on the rapid growth of new energy vehicle penetration from first- and second-tier cities to third-, fourth-, and fifth-tier cities. Leapmotor is launching specialized products in Northeast and Northwest China to adapt to low-temperature environments. The company believes that expanding coverage will not bring diminishing marginal increments, with new store performance growing rapidly and focusing on channel quality, with 70% to 80% of dealers being profitable.

**Q: How will Leapmotor increase production capacity overseas, including capacity plans in Europe and Malaysia?**

**A:** The company is not worried about overseas capacity, thanks to Stellantis as a strong partner. Overseas capacity deployment and enhancement will be very rapid. For example, capacity will be available in Malaysia this year, and localized production is expected to be achieved in Europe next year. Capacity will be quickly launched according to sales demand to ensure it meets the needs of global market growth.

**Q: What is the expected capital expenditure (CapEx) for Leapmotor's localized production in Malaysia and Europe next year?**

**A:** Overseas investment is mainly made by Leapmotor International rather than Leapmotor itself. Most overseas projects involve transforming existing production lines, with total investment far less than new projects. Shareholders of both parties will jointly optimize overseas investment, so capital expenditure is not a major issue.

**Q: Regarding the license fee in the financial statements, there was a contribution in the first quarter. What is the expected amount for the second quarter? How should the overall scale of license fees be viewed in the subsequent quarters?**

**A:** The company confirms that there was a license fee contribution in the first quarter, and there will also be some in the second quarter. This revenue comes from cooperative projects with partners. Some projects are still under negotiation, so the overall scale and specific situation of subsequent license fees will depend on the progress of negotiations.

**Q: Please introduce the progress of Leapmotor as a Tier 1 component supplier in non-automotive business.**

**A:** Leapmotor has ten years of experience in self-developed and self-made components, which have been fully verified in the company's products. Significant progress has been made in component sales this year, including supplying to traditional Chinese OEMs (some have SOP) and selling to international partners. Both domestic and international important partners have intentions to purchase Leapmotor components, and the prospects for component sales are promising.

**Q: What is Leapmotor's guidance for full-year profits in 2025 and 2026?**

**A:** The company's previous goal was to strive for breakeven. Given that profitability has been achieved in the first half and the sales forecast for the second half is higher than the first half, the company is currently working hard to achieve full-year profitability, with a net profit target of RMB 500 million to 1 billion. Specific profit guidance for 2025 and 2026 is not clearly mentioned.

**Q: Regarding carbon credit income, what is the expected amount for the full year? How will the company utilize this income, retain it as profit, or invest in overseas marketing?**

**A:** The company confirms that carbon credit income belongs to Leapmotor. Although no specific full-year amount is given, the company states that it will handle this income cautiously. In the early stages of overseas business development, the company does not pursue high profits but prioritizes brand building, product sales, and increasing market share. Therefore, the company will consider how to use this income to support Leapmotor International (MPMI) and promote overseas sales.

**Q: Considering the strong growth of the European new energy vehicle market, will Leapmotor adjust its local sales strategy or guidance in Europe?**

**A:** Leapmotor has not modified its overseas sales guidance this year, maintaining it at about 50,000 to 60,000 units. The company believes this year is its global layout year, especially with smooth progress in the European market and widespread recognition from European users (especially German users). The company is confident in achieving this year's overseas sales guidance.

**Q: Non-automotive revenue in the first half was RMB 1.1 billion. What specific projects are included in "other income"?**

**A:** Non-automotive revenue in the first half was RMB 1.1 billion. "Other income" mainly includes carbon credit income, income from cooperative projects with partners, and increased revenue from direct sales companies. The company further clarifies that "other income" mainly consists of government subsidies.

**Q: Considering that the new energy vehicle purchase tax incentive will not be extended next year, how will this affect Leapmotor's sales next year?**

**A:** The company believes that the impact of the purchase tax policy change on sales will be minimal. The impact is expected to be mainly concentrated in the first quarter of next year (January and February), with negligible impact on full-year sales. The company refers to the situation in 2022 when the national subsidy was canceled, and the penetration rate of new energy vehicles did not decrease but increased in 2023, believing that the impact of this purchase tax policy is similar, possibly only causing short-term sales fluctuations or early demand release.

**Q: What is the impact of the cancellation of the new energy vehicle purchase tax incentive on Leapmotor's profits next year?**

**A:** The company is not worried about the impact on profits. Leapmotor has always balanced equity resources and competitiveness and utilized cost control capabilities. With these capabilities, the company is confident in creating highly competitive products. The company believes it can still achieve outstanding results next year, similar to this year, and is therefore optimistic about the profit margin.

**Q: The D series model of Leapmotor is expected to debut in October and be launched in the first quarter of next year. How will it compete with popular models from peers (such as Li Auto, Xiaomi)?**

**A:** The first product of the D series will be officially launched in the first quarter of next year, covering a variety of highly competitive product lines such as SUVs and MPVs. Leapmotor will adhere to the core technology competition strategy and provide cost-effective products. The company believes that the D series, like the C series, will provide high cost-effectiveness through technological and R&D advantages, allowing users to experience more advanced products with less investment, even in the RMB 300,000 price range, attracting consumers.

**Q: How does Leapmotor position the price range of the B series models?**

**A:** The company did not clearly state the price range positioning of the B series in this Q&A. However, the company's overall strategy is to provide cost-effective popular products in any price range (including RMB 100,000 and 200,000 models), allowing more consumers to benefit from its core product philosophy.

**Q: What is the profit margin of Leapmotor International's automotive sales in the second quarter? Can it be broken down by region?**

**A:** Leapmotor International's overall GP margin in the first half was profitable, with the main profit coming from Europe. As a partner, Leapmotor cannot provide detailed profit margin information for Leapmotor International and suggests referring to the partner's financial report. The company believes that Leapmotor International performed well and achieved its plans.

**Q: Please introduce the specific plans for introducing new models overseas, such as the B series and extended-range electric vehicles (EREV)?**

**A:** The B10 pure electric vehicle will be launched in Europe in September, and its extended-range electric vehicle (EREV) version will be launched overseas (not available in China) by the end of this year or next year. Other products of the B series and A series will also be gradually launched globally next year. The EREV model of the C10 was launched in Europe in April this year and was well received by users.

**Q: How is the progress of supplying components to Stellantis Group? When can the related revenue be confirmed in the financial report?**

**A:** The company has announced the sale of components to Stellantis and has SOP (start of production/supply) business. Since SOP requires time for R&D matching, large-scale overseas sales revenue may not be confirmed in the financial report until next year or the second half of next year.

### Related Stocks

- [09863.HK - LEAPMOTOR](https://longbridge.com/en/quote/09863.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
