Chinese new energy vehicle (NEV) startup Zhejiang Leapmotor Technology Company and Chinese state-owned automaker FAW Group have signed a new agreement aimed at strengthening their collaboration across a broader range of new automotive technologies and business areas.
This new agreement follows an earlier collaboration agreement signed in March 2025, as the two companies look to strengthen their competitiveness in the NEV segment by combining their respective strengths in technology, manufacturing and marketing resources, amid fast-rising competition from other domestic automakers.
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FAW began supplying engines for Leapmotor’s hybrid vehicles at the beginning of this year, after the previous agreement was formalised, while a new jointly-developed model is scheduled to go into commercial production in the near future, according to local reports. FAW Group has since acquired a 5% stake in Leapmotor for CNY 3.74 billion (US$ 557 million).
At this latest signing ceremony, held at FAW’s headquarters in Changchun, Jilin Province, the two companies agreed to strengthen and broaden their collaboration in key areas, including capital investment, new vehicle development, marketing and financial services, as well as the development of key technologies such as intelligent driver assist systems, electrified powertrains, intelligent chassis, manufacturing technologies, and component lightweighting.
Leapmotor sold a total of 458,000 vehicles globally in the first seven months of 2026, up 68% year-on-year, making it one of China’s most successful NEV startups to emerge in the last ten years.
