Chinese electric vehicle manufacturer Leapmotor has launched its first retail store in Hong Kong, marking its 1,500th store globally.

The outlet, located in the Cityplaza complex at Taikoo Shing, opened on June 11, 2025, with a second store planned for December.

According to CEO Zhu Jiangming, Leapmotor sees Hong Kong as a showcase for international consumers and a platform for investors.

Leapmotor has expanded to markets in Southeast Asia, including Malaysia, Thailand, and Indonesia

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chinese EV makers use strategic partnerships to navigate international regulatory hurdles

Leapmotor’s partnership with Stellantis represents a sophisticated approach to global expansion that’s becoming increasingly common among Chinese EV manufacturers.

The €1.5 billion ($1.7 billion) investment for a 21% stake in Leapmotor created a joint venture (Leapmotor International) where Stellantis holds the controlling 51% share, giving the Chinese brand immediate access to established distribution networks across Europe and other regions 1.

This structure cleverly navigates the growing trade barriers facing Chinese EVs, as vehicles produced through Stellantis’ existing facilities could potentially avoid tariffs targeting Chinese imports, similar to how the companies plan to leverage Stellantis’ Tamil Nadu factory for the Indian market 2.

The arrangement mirrors other successful partnerships in the automotive industry where Chinese technological capabilities combine with Western market access and regulatory compliance expertise, creating a more resilient expansion model than direct exports.

Leapmotor’s aggressive timeline, determining factory locations in both Europe and Southeast Asia by year-end, demonstrates how these partnerships can accelerate internationalization compared to the decades traditional automakers needed to establish global footprints.

2️⃣ Price wars in China’s domestic market driving accelerated overseas expansion

The fierce competition in China’s home market is forcing EV makers to seek growth overseas, with Leapmotor’s Hong Kong expansion coming amid an unprecedented price war.

BYD’s 20% price cut on its Seagull hatchback to ¥55,800 ($7,766) and Geely’s discounts of up to 18% illustrate the intensity of domestic competition that’s squeezing margins for all players in the world’s largest EV market 3.

This pricing pressure explains why Leapmotor’s vice president Li Tengfei emphasized that “speed is critical” in international expansion. Companies that can quickly establish footholds in less saturated markets gain breathing room from the cutthroat domestic environment.