One day after announcing discounts of up to RMB 10,000 for its least expensive model, the T03, Leapmotor announced benefits including loan interest subsidies for two other models.
(Image credit: CnEVPost)
One day after announcing discounts on its lowest-priced model, Chinese electric vehicle (EV) startup Leapmotor has begun a promotion for its entire lineup of models.
Customers who buy Leapmotor’s entire lineup between November 1 and November 30 can enjoy benefits including loan interest subsidies and option subsidies, the company announced on the night of November 2.
Leapmotor’s current models on sale include the T03, C01, and C11, with the T03 available only in a battery electric vehicle (BEV) version, and the C01 and C11 available in both BEV and extended-range electric vehicle (EREV) versions. The company’s website also showcases the S01 pure electric coupe, but it is not currently available for ordering.
Customers who pay a RMB 5,000 ($680) deposit for Leapmotor’s full range of available models this month will receive up to RMB 10,000 in loan interest subsidies, and RMB 5,000 in option funds, according to the company’s announcement.
Meanwhile, Leapmotor is also offering customers benefits including free charging piles and coupons that can be used to purchase insurance.
On November 1, Leapmotor announced that it is offering limited-time discounts of up to RMB 10,000 on its lowest-priced T03 this month, bringing the starting price down from RMB 59,900 to RMB 49,900.
In Leapmotor’s promotions announced yesterday, there were no major changes to the T03’s benefits, and the loan interest subsidy only applies to the C01 and C11.
These promotions could drag down Leapmotor’s gross margin, which has just turned positive.
Leapmotor’s gross margin was 1.2 percent in the third quarter, the first time it has turned positive since inception. The figure was -5.2 percent in the second quarter and -8.9 percent a year ago.
The promotion comes at a time when Leapmotor’s overall sales performance has been weak so far this year.
Leapmotor delivered a record 18,202 vehicles in October, up 159.07 percent year-on-year and up 15.2 percent from 15,800 in September.
However, in the January-October period, Leapmotor delivered 107,029 vehicles, up just 13.11 percent year-on-year. This was largely due to its big drop in deliveries at the start of the year, with combined deliveries in January-July lower than the same period last year.
Leapmotor’s deliveries began a significant decline in the fourth quarter of last year, falling to 1,139 units by January of this year, the lowest since March 2021.
In an effort to reverse the sales slump, Leapmotor launched EREV versions of its two flagship models, the C01 and C11, to target a larger market.
On October 26, Leapmotor unveiled its tie-up with Stellantis, saying the latter would invest 1.5 billion euros ($1.59 billion) in it for a roughly 20 percent stake and two seats on the company’s board.
($1 = RMB 7.3164, $1 = 0.9458 euros)
