Stellantis Leverages Chinese Partnership to Challenge BYD in European EV Market
Stellantis NV has intensified its rivalry with Chinese automaker BYD Co., revealing that its partner Zhejiang Leapmotor Technology Co. is achieving significant electric vehicle sales in Europe's largest EV market. The development comes as Chinese automakers continue making impressive inroads into the European automotive sector despite existing import tariffs, offering competitively priced electric and hybrid models that are gaining consumer traction.
Leapmotor's Rapid European Expansion
According to Florian Huettl, Stellantis's top executive in Germany who also oversees the Opel brand, Leapmotor managed to outsell BYD on electric vehicles in Germany during October. The Chinese manufacturer's shipments have experienced substantial growth across the region this year after Stellantis dealerships began offering models like the electric T03 city car. Huettl made these remarks during his appearance at the Automobilwoche summit held in Berlin on Wednesday.
"We've established Leapmotor in Germany in record time," Huettl stated during the conference. "We integrated Leapmotor into our existing dealer network — backed up by the Stellantis infrastructure such as warranties and financial services — which has given Leapmotor access to the market." Approximately 120 dealers in Germany are currently offering Leapmotor models, while Stellantis brands maintain presence in over 1,000 dealerships throughout the country.
Deepening Competition Between Automotive Giants
The comments appear directed at BYD, which had taken the unusual step in September of issuing a press release attempting to correct statements made by Stellantis CEO Antonio Filosa regarding Leapmotor's sales success. Despite Leapmotor's recent achievement in outselling BYD on EVs in Germany for October, BYD maintains a stronger position in overall German sales and cumulative EV sales through the first ten months of this year, according to data from Germany's transport authority KBA.
The competition between these automotive players extends beyond vehicle sales. BYD has recruited several former Stellantis executives, including Maria Grazia Davino, the former United Kingdom boss for Stellantis, and Alessandro Grosso, who previously served as vice president of Italy sales. The Chinese automaker also brought on Alfredo Altavilla, who had been a candidate to succeed the late Sergio Marchionne as Fiat Chrysler CEO in 2018, as a special adviser for the European market in August of last year.
Maria Grazia Davino, now serving as a regional director at BYD's European business, also presented at Wednesday's conference, highlighting her company's own sales achievements. "Last year in Germany we didn't manage to sell 3,000 units, and this year we will reach six times as many, and next year that growth will continue," Davino announced. "That is the goal. Step by step, and then each step forward needs to become bigger with our dealers."
Strategic Partnerships and Market Impact
Stellantis and Leapmotor formed their partnership approximately two years ago, collaborating to gain access to the Chinese market while simultaneously planning to sell Leapmotor vehicles internationally. Since establishing this alliance, Leapmotor has initiated sales across multiple European countries, leveraging Stellantis's established dealership network and infrastructure to accelerate its market entry.
The successful integration of Leapmotor into Stellantis's operations is providing additional benefits beyond competitive positioning. Huettl noted that Leapmotor sales are helping Stellantis meet European Union targets on reducing CO2 fleet emissions, an increasingly important consideration as environmental regulations tighten across the continent.
Chinese automakers have demonstrated remarkable growth in Europe despite the region's import tariffs, offering both electric and hybrid models at attractive price points. Although their initial market entry faced challenges related to establishing dealer and service partnerships, manufacturers have successfully addressed these issues. Their efforts have yielded significant results, with Chinese carmakers surpassing South Korean competitors like Kia Corp. for the first time in certain market segments.
