Chinese electric vehicle manufacturer Leapmotor plans to launch an entirely new brand in 2027 focusing on the premium segment, according to information published by the portal LatePost this Monday. The strategy aims to target the market for models priced above 300,000 yuan (about 43,000 dollars), a move that marks the company’s shift towards producing vehicles with a higher profit margin.
The decision reflects the need to increase profitability in a scenario where the current average price of Leapmotor vehicles is 125 thousand yuan. With a profit of just 905 yuan per vehicle last year, the company sees the premium segment as an opportunity to significantly increase earnings.
Nova brand will have independent sales network
Conforme the current plan, Leapmotor will establish a completely separate sales network for the premium brand. The company declined to officially comment on the project, but multiple independent sources confirmed the strategy to the Chinese news portal.
Building a luxury brand represents a considerable challenge. Analistas consulted point out that the development of a new brand requires extensive time and resources, in addition to heavy investment in positioning with high-end consumers.
Robust Crescimento Sustains Expansion
Leapmotor’s accelerated pace of growth provides a solid foundation for its expansion strategy. The company delivered 596,555 vehicles in 2025, an increase of 103% compared to the previous year, and achieved net profit of 540 million yuan, consolidating itself as the second Chinese electric startup to achieve annual profitability.
Zhu Jiangming, the company’s founder, president and CEO, recently demonstrated confidence by reaffirming the goal of delivering one million vehicles in 2026. The new A10 and D19 SUV models exceeded internal expectations in order volume, with the D19 showing real transaction prices above 250 thousand yuan.
Mercado International Drives Revenue
Foreign sales currently represent 36% of Leapmotor’s total volume and are emerging as an important driver of growth. Europa has consolidated itself as the main regional market outside China, in line with the long-term strategic goal of increasing international contribution to 60% of revenue.
Robust performance in the foreign segment strengthens the company’s expansion plans and reduces exclusive dependence on the domestic market. The global presence provides a platform to launch the premium brand outside of China.
Parceria with Stellantis boosts luxury segment
The alliance with the Italian multinational Stellantis could accelerate Leapmotor’s penetration into the high-end segment. Stellantis has extensive experience in managing luxury brands, including Maserati, and has a consolidated infrastructure in premium channels and differentiated service capabilities.
The cooperation between the two companies offers Leapmotor access to accumulated knowledge in positioning, specialized distributors and high-income customer service. Esse support can make it easier to overcome natural barriers faced by emerging brands in the luxury segment.
Ambições aggressive financials for 2026
Leapmotor has set challenging targets for 2026: annual volume of one million vehicles and net profit of 5 billion yuan. The premium brand strategy is part of the larger plan to increase operating margins and portfolio diversification.
The main brand’s current price structure would be difficult to support pricing above 300,000 yuan without losing its marketing identity. Therefore, a separate brand allows the company to explore different segments without internal cannibalization:
- Leapmotor: affordable positioning with average prices of 125 thousand yuan
- Nova brand: premium segment with entry from 300 thousand yuan
- Oportunidade margin: differentials of 175 thousand yuan between segments
- Meta volume: one million units totaled in 2026
- Alvo profit: five billion yuan in annual results
Dependência of carbon credits decreases
Leapmotor’s financial scenario in 2025 revealed significant dependence on the sale of carbon credits to achieve profitability. The company recognizes this vulnerability and seeks to strengthen operational gains through greater volume and a better price mix.
Entry into the premium segment would mitigate this weakness by increasing margin per unit. Modelos priced above 300,000 yuan naturally carries lower costs in percentage terms, widening the difference between income and expenses.
Desafios on premium brand building
Analistas from the industry, while preferring anonymity, expressed caution about the second brand’s prospects. The Chinese electric market is saturated with multiple established competitors in the premium segment, including Tesla, BYD, Nio and XPeng.
Construir reputation and loyalty in a highly competitive market will require clear differentiators in technology, design and customer experience. Leapmotor will have to demonstrate that its value proposition justifies prices above 300 thousand yuan against already established alternatives.
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