China FAW Group, a major player in the automotive world, is reportedly close to finalizing a significant equity investment in Leapmotor. Word on the street is a signing could happen as early as this year. While discussions are ongoing, Leapmotor’s founder, chairman, and CEO, Zhu Jiangming, made it clear that the company isn’t giving up control.Smart move, considering how vital leadership can be in this fast-paced industry.
This news follows earlier buzz about FAW wanting a piece of Leapmotor, especially after they inked a strategic cooperation agreement back in March. For those keeping score, Stellantis Group currently holds around 21.26% of Leapmotor, making them the biggest single shareholder. But Zhu Jiangming and his original team still pull the strings, collectively holding about 25.8% of the shares, directly and indirectly.
Chinese media outlet NBD, citing unnamed sources, suggests FAW’s investment is in its final stages. It looks like FAW plans to grab about 5% of Leapmotor, a bit less than the 10% initially rumored. This slight reduction might indicate a shift in strategy or simply a refined negotiation.
Leapmotor’s Strong Financial Footing
Frankly, Leapmotor isn’t exactly desperate for cash. Their third quarter in 2025 painted a pretty picture, with revenue soaring to 19.45 billion yuan, roughly 2.72 billion USD. That’s a whopping 97.3% jump year-on-year, and a healthy 36.7% bump from the second quarter of this year. Li Tengfei, Leapmotor’s Vice President, is optimistic, projecting fourth-quarter profits to match the third, with an eye-popping net profit of 5 billion yuan (700 million USD) expected next year. When a company is doing this well, an investment is more about strategic alignment than a bailout.
FAW’s Drive for NEV Transformation
For China FAW Group, this investment arrives at a crucial time. They’re feeling the heat to rev up their new energy vehicle (NEV) game. Despite an ambitious “All in NEV” strategy, FAW’s NEV sales only make up about 10% of its total. To put that in perspective, in November, FAW moved 306,000 vehicles, but only 35,500 of those were self-owned brand NEVs. Compare that to Changan Auto, a peer that sold 283,000 vehicles in November, with a significant 125,000 units being NEVs, marking a 23% year-on-year increase. It’s clear FAW needs a shot in the arm to catch up.
A Partnership Beyond Just Money
It’s not just about the money, either. FAW and Leapmotor already have some technical collaborations brewing. After joining forces strategically in March, their first joint project, an overseas model for FAW’s Hongqi brand, kicked off in April. We can expect mass production for international markets in the second half of next year. That’s a rapid turnaround, showing how quickly Chinese automakers can execute when they put their minds to it. It reminds you of the swift product cycles we often see in the Chinese EV market.
Zhu Jiangming’s recent comments really underscore the nature of this deal. He stated, “Even if FAW or other automakers invest in Leapmotor, it will be more as a shareholder in the role of a relative investor. This is something we must adhere to and will certainly achieve.” This highlights Leapmotor’s determination to maintain its independent vision while leveraging FAW’s colossal resources. It’s a testament to the dynamic environment of Chinese EV brands, where even giants like BYD and Nio are constantly evolving their strategies.
