In the fiercely competitive landscape of the new energy vehicle market, one automaker has distinguished itself, carving out a path to success and achieving profitability amidst intense industry rivalry.

The news of Leapmotor's profitability has sent ripples through the industry, akin to a boulder falling into still waters.

For an extended period, the new energy vehicle industry has confronted numerous challenges, including high costs and cutthroat market competition. Despite the promising outlook and vast potential of the market, only a select few companies have emerged victorious, achieving profitability. Tesla, a pioneer in the industry, was the first to achieve profitability through its cutting-edge technology and mass production capabilities. Li Auto followed suit, leveraging precise user targeting and robust sales volumes to attain profitability. Now, Leapmotor has joined the ranks of profitable companies, with an average monthly sales volume exceeding 20,000 units in 2024. A closer examination of these three profitable new-energy automakers reveals impressive sales figures.

Sales volume serves as the cornerstone for automakers to reduce costs and enhance efficiency.

In 2024, Leapmotor embarked on a period of rapid growth. Not only did it set a new monthly delivery record for seven consecutive months, but it also surpassed its annual sales target of 250,000 units. The fourth quarter witnessed a significant surge in Leapmotor's sales volume, with an average monthly delivery of over 40,000 units, ultimately leading to profitability.

This heightened sales volume has necessitated a greater demand for production capacity. Earlier media reports indicated that Leapmotor's two factories in Jinhua were operating at full capacity, and without expansion, vehicle deliveries might face delays. Leapmotor has announced its plans to accelerate the construction of a new factory in Hangzhou, aiming for production to commence in the first half of next year. Additionally, a third factory in Jinhua is in the planning stages, with an anticipated production start towards the end of next year or early the year after. Behind Leapmotor's continuous production growth lies the achievement of cost reduction and efficiency enhancement. The expansion of sales volume has pushed the production capacity of Leapmotor's multiple factories to their limits, while also further reducing the cost of procuring and producing parts. Furthermore, Leapmotor has minimized costs in production, assembly, transportation, and other aspects through comprehensive in-house research and development, self-manufactured parts, and collaboration with suppliers to build factories.

'Affordable and high-quality' is Leapmotor's winning formula.

Leapmotor's sales journey has not been without challenges. In 2019, its first coupe, the S01, received a lukewarm reception upon launch. However, in 2020, Leapmotor timely expanded its product line with the introduction of the highly cost-effective A00-class car, the T03. Targeting a broader mass market for four-door pure electric cars, the T03, with its larger size, longer range, and more affordable price, quickly gained market share, achieving sales of nearly 40,000 units in 2021 and exceeding 60,000 units in 2022. Towards the end of 2021, the rookie C11 gained traction due to its excellent cost-effectiveness.

In 2022, the C11 emerged as the best-selling domestically produced pure electric B-class SUV, with sales of 44,371 units, and in 2023, Leapmotor began to diversify its offerings with both pure electric and extended-range models. What truly catapulted Leapmotor into the spotlight was the launch of the C16, which shares similarities with Li Auto's L6 and L8 in terms of appearance, product strength, and user needs, but at a fraction of the price, leading to controversy over being a 'half-price Li Auto'. Facing online ridicule, Leapmotor remained unperturbed. Founder Zhu Jiangming candidly stated that Li Auto serves as an excellent benchmark for Leapmotor to learn from. As long as it is an outstanding competitor in the industry, Leapmotor should emulate it, draw on its experiences, and infuse more innovative elements to meet user needs and gain their recognition.

Hybrid power fuels sales surge

Amidst industry debates on the necessity of extended-range technology, Li Auto and AITO embarked on their extended-range layouts. At that time, the extended-range segment was a blue ocean, and as early entrants, Li Auto and AITO reaped substantial profits. Leapmotor followed suit, entering the extended-range segment and also benefiting significantly from the lack of competitors, securing the third position.

The facts speak for themselves. While Leapmotor faced an existential crisis in the past, since entering the extended-range segment in 2023, its sales volume has soared. In 2024, Leapmotor's annual sales volume increased by over 100% year-on-year. Looking back at the former 'NIO, Xpeng, and Li Auto' trio, NIO continues to focus on pure electric development but has incurred losses amounting to hundreds of billions, with profitability still a distant prospect. Compared to current pure electric technology, the advantages of extended-range technology are indeed more pronounced, eliminating range anxiety and conserving energy consumption. Simultaneously, extended-range models boast smaller battery capacities and lower costs.

'Doubt extended-range, envy extended-range, become extended-range.' The value of this 12-word mantra continues to grow.

From an underdog to a finalist, Leapmotor's journey has spanned nine years, marked by initial setbacks followed by a resurgence. Its phased success not only validates the rationale of a dual-track approach with extended-range and pure electric models but also underscores the significance of sales volume for automakers in controlling costs and enhancing efficiency. After enduring hardships and now reaping rewards, Leapmotor finally has a ticket to the finals. The competition ahead will undoubtedly be even more fierce. Can Leapmotor continue to lead the pack?

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