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Leapmotor-Stellantis JV calls EU-China import cap deal 'interesting alternative' - Finance news and analysis from Global Banking & Finance Review
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Leapmotor-Stellantis JV calls EU-China import cap deal 'interesting alternative'

Published by Global Banking & Finance Review

Posted on October 12, 2026

1 min read

· Last updated: October 12, 2026

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Leapmotor-Stellantis JV: EU-China Hybrid Import Cap Called 'Interesting Alternative'

Stellantis-Leapmotor Joint Venture Considers EU-China Hybrid Import Cap

PARIS, Oct 12 (Reuters) - The Stellantis-Leapmotor joint venture sees a deal between the European Union and China to cap imports of hybrid vehicles as an "interesting alternative to tariffs", its CEO Danilo Annese said on Monday at the Paris Auto Show.    

Compliance and Future Clarifications

• Stellantis-led joint venture Leapmotor International will comply with any deal the EU and China reach, although details will need to be clarified in coming months

Market Demand Trends

European EV Market Growth

• Annese said market demand for EVs in Europe is gaining more traction than expected a year ago

Rising Demand in Southern Europe

• Demand is also increasing in countries such as Italy and Spain, where EV penetration has been traditionally lower, he added

Future Manufacturing Plans

Ongoing Discussions with Stellantis

• Annese said discussions were constantly ongoing with Stellantis over possible locations for future Leapmotor manufacturing sites in Europe

Potential Locations

Madrid Plant Option

• Options include a plant in Madrid, but others are available, including out of Spain, he said

(Reporting by Giulio Piovaccari; Editing by Kirsten Donovan)

Key Takeaways

  • The deal would cap Chinese hybrid vehicle exports to the EU—expected to roughly halve volumes, seen as preferable to punitive tariffs (apnews.com).
  • Leapmotor‑Stellantis JV will abide by the agreement, while aiming to meet growing European EV demand, especially in markets like Italy and Spain.
  • Discussions are underway for future European manufacturing sites, possibly in Madrid, aligning with broader localization strategy and EU‑Made requirements (stellantis.com).

References

Frequently Asked Questions

What alternative to tariffs did Leapmotor-Stellantis JV mention?
Leapmotor-Stellantis JV referred to an EU-China import cap on hybrids as an interesting alternative to tariffs.
Will Leapmotor International comply with potential EU-China deals?
Yes, Leapmotor International's CEO said the joint venture will comply with any agreement reached between the EU and China.
How is European demand for EVs changing?
Market demand for EVs in Europe is increasing more quickly than expected compared to last year.
Which countries are seeing rising EV demand aside from core EU markets?
EV demand is also growing in Italy and Spain, where EV penetration has been traditionally lower.
Are new Leapmotor manufacturing sites in Europe being considered?
Yes, possible locations for future Leapmotor manufacturing sites in Europe are under discussion, with Madrid as one option.

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