Recently, the much-anticipated Guangzhou Auto Show officially kicked off, attracting the active participation of global mainstream automakers. According to statistics, this year's Guangzhou Auto Show showcased 78 world premieres, including 6 from multinational companies, and a total of 1,171 vehicles on display, 512 of which were new energy vehicles. Both the total number of vehicles and the proportion of new energy vehicles reached new highs. Clearly, new energy vehicles are becoming increasingly important in the automotive industry and are gradually becoming the main player in the field.

At this auto show, many automakers unveiled new models, and Leap Motor was no exception. Notably, Leap Motor not only showcased its entire product line but also debuted its first global model from the new B series, the Leap B10, in China for the first time, attracting the attention of many visitors.

Sales reach new heights again

It must be said that Leap Motor has been on a roll lately, not only setting a new record for quarterly revenue but also seeing its sales climb steadily. According to data, Leap Motor's revenue in the third quarter of 2024 was 9.86 billion yuan, a new record for a single quarter, representing a year-on-year increase of 74.3%. Additionally, according to the latest sales data released by Leap Motor, 38,177 vehicles were delivered in October, a year-on-year increase of 109.7%, setting a new record for the fifth consecutive month.

Firstly, Leap Motor has established a rich product matrix, with models that cater to the diverse needs of different consumers. To date, Leap Motor has launched multiple models, including the C16, C10, C11, C01, and T03, forming a comprehensive product line. These models have various focuses, and each offers different power versions and configurations, fully meeting consumers' requirements for range, performance, comfort, and more, while also providing a personalized car-buying experience. Now, Leap Motor's new model, the Leap B10, has also been unveiled. With its official launch, Leap Motor's product matrix will further expand.

Secondly, Leap Motor's high cost-performance strategy has helped it win the favor of more consumers. For a long time, Leap Motor has maintained a high cost-performance strategy, with its models offering significant price advantages compared to other brands in the same segment, making it highly competitive in the market. For example, the starting price of the six-seater SUV Leap C16, launched by Leap Motor earlier this year, is between 155,800 and 185,800 yuan. Notably, despite its affordable price, the Leap C16 does not compromise on configuration. It not only offers spacious interior space but also performs well in terms of range and intelligence, making it popular among consumers.

Thirdly, the reputation accumulated by Leap Motor over the years has also contributed to the growth of its product sales. Since its establishment in 2015, Leap Motor has been in the new energy vehicle industry for nine years, launching multiple models. Over time, Leap Motor has not only established a brand reputation but also laid a foundation of users, both of which have become positive factors driving the growth of Leap Motor's sales, attracting more consumers to choose its models.

Accelerating overseas market expansion

In addition to competing vigorously in the domestic market, Leap Motor has also accelerated its layout in overseas markets. On September 24, the Leap C10 and T03 were officially launched in Europe, and a global media test drive event was also held. At the Paris Auto Show on October 14, Leap Motor's C16, C10, T03, and the new model B10 were unveiled together. Notably, in exploring overseas markets, Leap Motor has its unique approach.

On the one hand, Leap Motor has chosen to cooperate with the Stellantis Group to accelerate its overseas expansion. As we all know, automakers generally have two ways to go overseas: vehicle exports and overseas plant construction. Leap Motor, however, has taken a different third path by cooperating with overseas companies. It is reported that the Stellantis Group is one of the world's leading automakers, with a profound influence in the global automotive market, a vast customer base, and mature sales channels and after-sales service systems. By cooperating with the Stellantis Group, Leap Motor can take this opportunity to leverage the group's resources and experience to more quickly enter overseas markets with its products.

On the other hand, Leap Motor continues to accelerate the construction of overseas sales outlets to boost the development of its overseas business. For automakers going overseas, channel construction and after-sales service are equally important. Thanks to the strong partnership with the Stellantis Group, Leap Motor has made rapid progress in overseas markets. It is reported that by the end of October, Leap Motor had established 339 dealership stores in Europe, all of which provide sales and after-sales services. Moreover, Leap International has selected nearly 140 logistics centers from the Stellantis Group's parts logistics system in Europe to distribute Leap Motor's parts, ensuring after-sales quality and improving customer satisfaction.

Leap Motor, on the rise, faces considerable pressure

Whether it's the steady increase in domestic sales or the steady progress in overseas markets, all indicate that Leap Motor is about to take off. However, it must be said that Leap Motor, which is on the rise, also faces challenges that cannot be ignored.

First, Leap Motor is still in a state of loss. The financial report shows that in the third quarter of 2024, Leap Motor's net loss was 690 million yuan, a 30.3% narrowing from the net loss of 990 million yuan in the same period last year and a 42.5% narrowing from the net loss of 1.2 billion yuan in the second quarter. Although Leap Motor's losses have narrowed significantly, it has not yet crossed the profitability line. As we all know, profitability is the key to maintaining the normal operation of an enterprise, and the new energy vehicle industry is relatively capital-intensive. Whether it's research and development, production, or subsequent sales and promotion, all require substantial financial support. If automakers cannot achieve profitability in a timely manner, their subsequent development will also be slowed down.

Second, the continuous increase in sales has also brought pressure on Leap Motor's production capacity. Data shows that Leap Motor delivered 38,177 vehicles in October, with net new orders exceeding 40,000, among which the net new orders for the three SUVs C16, C10, and C11 all exceeded 10,000. The sales data of Leap Motor is very impressive. However, the continuous growth in sales is also a sweet trouble for Leap Motor because it places higher demands on its production capacity. Currently, the production capacity of Leap Motor's two factories in Jinhua has reached saturation. To this end, Leap Motor has also launched a series of capacity expansion plans to better meet the growing demand for orders.

Third, it remains uncertain whether the new model will continue to maintain high sales. Currently, Leap Motor's first global model from the new B series, the B10, has been officially unveiled. Based on the information currently disclosed, the Leap B10 performs well in design, intelligence, handling, and other aspects, at the leading level in the industry. However, the Leap B10 has not yet been officially launched, and it is uncertain whether the model will ultimately win the favor of consumers.

In summary, Leap Motor is at a critical juncture, and the continuous growth in sales has set a good precedent. As for whether Leap Motor can stabilize and expand its current advantages in the future, let's wait and see.