Leapmotor goes premium — a logical, but risky move

Leapmotor is getting ready to change its strategy. The brand, which up to this day has operated in the mass segment, is planning to create a separate marque for more expensive cars. A launch is planned for 2027, with a target price bracket of more than 300,000 yuan (around 43,500 USD).

At first glance, it looks like a natural step. The current brand’s lineup covers a range from 65,800 to 269,800 yuan, and the average price is around 125,000 yuan. It is the segment where the company has volume, but margins are limited.

Financial indicators confirm that the company is growing. Revenue hit 64.73 billion yuan, net profit reached 540 million yuan, and sales approached 596,000 cars. For a startup, this is a significant result.

But then the classic scale issue appears. To gain more, you either need to sell even more cars or increase the average bill. Leapmotor has chosen the second path.

The creation of a separate brand is standard practice. It allows companies not to mix mass and expensive models, creating different images and expectations for buyers. But in the premium segment, the rules are different.

Here, not only specs and price are important. Quality, technology, service and reputation come to the foreground. New players always have a more difficult time.

An additional factor is powertrains. In the higher-end segments, EVs compete with hybrids, which are generally more versatile. This means that Leapmotor must choose its direction very carefully.

The launch of a new brand is not just about widening the lineup, but a test of maturity. And how well the brand deals with this task will determine its further development.