Leapmotor Robotics Plans Signal Expansion Beyond Vehicles

Leapmotor has confirmed plans to enter the embodied robotics sector and said it will formally announce details of its robotics business in the near future. The Leapmotor robotics plan was disclosed by vice president and CFO Li Tengfei during an interim earnings call on Monday, although he did not provide details on product form, development progress or investment size. Li said Leapmotor, as a new energy vehicle maker with full-stack in-house research and development capabilities, is among the companies best positioned to develop embodied robots.

Subsidiary Registration Provides Robotics Clues

Business registration records provide additional evidence of the company’s move into robotics. Huzhou Lingsheng Precision Manufacturing Co Ltd, a Leapmotor subsidiary, was established in late July with a business scope covering industrial robot manufacturing, intelligent robot development and auto parts production. Wu Cun, Leapmotor’s senior vice president and head of its electric-drive product line, serves as the subsidiary’s legal representative. However, Leapmotor has not disclosed what role the new subsidiary will play in the planned robotics business or whether it will become a dedicated platform for future embodied robot development.

Profit Growth Continues Despite Margin Pressure

The robotics disclosure comes as Leapmotor has reported profits for three consecutive half-year periods. Revenue in the first half rose 57.2% year over year to 38.11 billion yuan ($5.62 billion), while net profit increased about 600% to 210 million yuan from 30 million yuan. Despite the sharp improvement in earnings, profitability remains under pressure from rising raw material prices and changes in product mix. Gross margin fell to 11.7% in the first half from 14.1% a year earlier, showing that stronger revenue and profit growth have not eliminated cost pressures.

Full-Year Profit Target Becomes Difficult

Li Tengfei also indicated that the company’s original full-year profitability goal is becoming difficult to achieve. Leapmotor had initially targeted net profit of 5 billion yuan for the full year, but management now expects net profit of about 3 billion yuan. The company also forecasts an overall gross margin of 13%-14% and a vehicle gross margin of 10%-11%. Li described achieving the original target as “very difficult,” highlighting the effect of raw material costs and product-mix changes on margins even as the company continues to expand its vehicle business and invest in new technology areas.

Overseas Sales Expansion Accelerates

Leapmotor’s international expansion has also accelerated significantly. Global sales rose 60.8% to about 356,400 vehicles in the first half, while exports surged 372.6% to about 96,200 vehicles, representing 27% of total sales. Management now expects overseas sales to reach 200,000 vehicles in 2026, above its previous target range of 100,000 to 150,000. The company has set a further overseas sales target of 350,000 to 400,000 vehicles for 2027, indicating that international growth is becoming an increasingly important part of its broader expansion strategy.

Stellantis Partnership Supports Local Production

The company is also preparing to expand localized production overseas through its partnership with Stellantis. The Spanish plant used by the two companies is scheduled to begin production of the B10 in October. Leapmotor expects sales of locally produced vehicles overseas to reach about 50,000 in 2027, although management said localized production may provide only a limited near-term improvement in margins. The production plan therefore supports the company’s overseas growth ambitions while also illustrating that greater geographic localization may not immediately translate into materially stronger profitability.

Technology Launch Will Highlight New Developments

Technology development remains another major focus for the company. Leapmotor plans to hold a technology launch event on September 16, when it is expected to unveil a new world model for assisted driving along with technology advancements in batteries and electric-drive systems. Li said the assisted-driving product based on the new architecture would deliver a “leapfrog improvement” over the existing system. The company also plans to launch more new models in 2027 across its B, C and D series, extending its product pipeline while continuing to develop its technology platform.

Frequently Asked Questions

What are Leapmotor’s robotics plans?
Leapmotor plans to enter the embodied robotics sector and is preparing to formally announce details of the business, although key development and investment information remains undisclosed. The company has already established Huzhou Lingsheng Precision Manufacturing Co Ltd, whose registered scope includes industrial robot manufacturing and intelligent robot development. Management has not said what role the subsidiary will play in the robotics operation. The move comes alongside continued vehicle growth, overseas expansion and technology development in assisted driving, batteries and electric-drive systems.