Chinese electric vehicle manufacturer Leapmotor is planning to expand its presence in South Africa and other African markets, with Egypt being the next target. The company's International CEO, Danilo Annese, stated that South Africa offers significant potential, but Leapmotor needs to establish its value proposition with local consumers. Annese emphasized that the company wants to enter the market in a proper way, rather than simply replicating strategies used in Europe.
Leapmotor is working with its local team to identify what would resonate with South African motorists and strengthen its presence in the country. The company intends to grow its South African business in 2027, using Stellantis's established dealer network and local operations to expand its reach. Stellantis currently operates 34 dealerships nationwide and plans to expand that network to about 48 outlets over the next two years.
Leapmotor's product strategy will remain focused on battery-electric vehicles (BEVs) and range-extender electric vehicles (REEVs). The technology could help address concerns about charging infrastructure and electricity supply, which remain barriers to wider electric vehicle adoption in South Africa. Annese argued that vehicle adoption and infrastructure development would advance alongside each other.
International markets already account for a growing share of Leapmotor's business, representing 22% of the company's results year-to-date. Europe is currently the leading international region, followed by South America, while emerging markets account for a smaller portion of sales. Annese stated that the company is far from reaching its potential in these countries, including South Africa.
Stellantis, which partly owns Leapmotor, is doubling down on Africa as a strategic growth region. The company reaffirmed its FaSTLAne 2030 strategy for the Middle East and Africa, targeting a 40% increase in regional revenue while maintaining double-digit operating margins. Stellantis aims for 90% of regional sales to come from 22 key vehicle programmes that are either produced in the region or sourced competitively from Asia.
Leapmotor, which entered the South African market in October last year, was founded in 2015 in China. The company's goal is to increase its South African market share, with Stellantis aiming to increase its market share from about 1.5% to between 4% and 5% by 2030. By 2030, about 90% of vehicles sold in South Africa would either be sourced from the Africa-Middle East region or imported from Asia.
Leapmotor's expansion plans in South Africa and other African markets are part of its strategy to build its international business through its partnership with Stellantis. The company is focused on establishing its brand values with local consumers and addressing concerns about charging infrastructure and electricity supply. With a growing presence in the region, Leapmotor aims to improve its overall performance in emerging markets.
Key points
- Leapmotor targets South African customers with battery-electric and range-extender electric vehicles
- Stellantis aims to increase its South African market share to between 4% and 5% by 2030
- Leapmotor plans to expand its presence in Egypt and other African markets
