Stellantis NV (NYSE: STLA) has officially started the local assembly of Leapmotor (HKEX: 9863) vehicles in Malaysia, marking a key step in the European automaker’s electrification strategy in Southeast Asia.
The first model to roll off the production line is Leapmotor’s C10 SUV (sport utility vehicle), according to a statement on Thursday. The production milestone comes about five months later than the initial target of late 2025 previously announced by the two companies.
The local assembly project is located at the Gurun manufacturing hub in Kedah, Malaysia, with Stellantis allocating 2.23 million euros ($2.59 million) for the development of the assembly operations.
In addition, Stellantis has secured a capital expenditure of 3.1 million euros, which is specifically earmarked for production line and infrastructure upgrades at the Gurun plant.
While C10 production is underway, the plant’s operations will be expanded. Stellantis plans to begin assembling Leapmotor’s B10 compact SUV at the facility by the end of 2026.
Isaac Yeo, managing director of Stellantis ASEAN (Association of Southeast Asian Nations), said it is a landmark achievement that places Malaysia at the forefront of EV industrialization in the ASEAN region.
While current production focuses primarily on meeting vehicle demand in the Malaysian domestic market, Stellantis is evaluating the prospects of exporting from Gurun to the wider ASEAN region.
To manage Leapmotor’s advanced vehicle architectures, technical personnel at the Gurun plant have undergone specialized training. The facility’s workforce is now certified to safely handle high-voltage electric systems of up to 800 volts, according to the statement.
The Leapmotor C10 was initially launched in China on March 2, 2024, offering both extended-range electric vehicle (EREV) and battery electric vehicle (BEV) versions.
The five-seater SUV currently has a starting price of 128,800 yuan ($19,030) in China. Leapmotor plans to release updated versions of its C-series SUVs in China on June 16, including the updated C10, C11, and C16.
The updated C10 features a new split headlight design, and its body length has increased by 10 millimeters. The pure electric range of its EREV variant has been boosted to 190 kilometers.
The start of production at the Malaysian plant comes as Leapmotor enjoys strong sales momentum. The Chinese EV maker delivered a record 81,569 vehicles in May, up 80.99% year-on-year.
This is also part of the expanding global partnership between Leapmotor and Stellantis.
Last month, Stellantis announced plans to add a new production line at its Zaragoza plant in Spain, which could start producing Leapmotor’s B10 model as early as 2026.
The two parties also intend to transfer ownership of Stellantis’ Madrid plant to their joint venture, Leapmotor International.
In October 2023, Stellantis invested 1.5 billion euros to acquire an about 20% stake in Leapmotor. This made it the largest outside shareholder of the Chinese EV maker.
The two sides subsequently formed Leapmotor International, a joint venture that holds exclusive rights to sell and manufacture Leapmotor products outside of Greater China.
Since launching models in 2024, the joint venture has expanded to over 850 sales and service points in Europe. In June, the electric hatchback Leapmotor Lafa 5 will also hit 28 overseas markets.
With the gradual release of global production capacity and continuous product line updates, Leapmotor’s globalization strategy is accelerating. The company is working toward its ambitious goal of delivering 1 million vehicles for the full year of 2026.
($1 = 0.8595 euros, $1 = 6.7701 yuan)
