The launch of Leapmotor, a new all-electric brand under Stellantis. also debut is the all-new electric Leapmotor C10, a groundbreaking EV driving revolution through a technology-first approach.
KUALA LUMPUR: The world’s fourth-largest automaker Stellantis, which has 15 auto brands under its umbrella, has selected Malaysia as the first South-East Asia country to market its all-electric Leapmotor brand.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Stellantis’ choice of Malaysia reflects the confidence that global players have in the country’s growing role as a hub for new energy vehicles.
“I was thrilled when Stellantis announced its decision to establish Malaysia as a regional manufacturing hub as part of its ‘Built in Asean for Asean’ strategy, alongside a regional headquarters for Asia Pacific.
“I am optimistic that this decision will significantly boost our automotive industry, facilitate advanced technology transfer and enhance our exports,” he said after the unveiling of Stellantis’ new all-electric sports-utility vehicle, the Leapmotor C10, yesterday.
Stellantis’ portfolio includes brands such as Fiat, Jeep, Maserati, Citroen, Alfa Romeo, and Chrysler.
In Malaysia, it currently markets only Peugeot. It plans to revive other marques too.
Stellantis Malaysia managing director Jamie Francis Morais said the group is evaluating their potential re-entry into the market.
“In Malaysia, you only see one brand (Peugeot) as of today. We used to have a few more brands, and we are planning to revive some. Citroen and Jeep are currently under review, and we are also looking at other brands such as Alfa Romeo,” he told StarBiz on the sidelines of yesterday’s launch.
When asked why some brands were no longer available in Malaysia, Morais said it was not intentional, but due to different importers involved over the years, each with their own strategies.
“Since the 1960s, the brands in Malaysia changed hands between five different importers. Each of these importers had their preferences, focusing on certain brands over others. As a result, some brands, like Citroen, were present at one point but may not have been actively pushed by later importers,” he said.
The entry of Leapmotor, a Chinese all-electric vehicle (EV) brand, into Malaysia is driven by Leapmotor International, which is a 51:49 joint venture (JV) between Stellantis and Leapmotor.
The JV is designed to expand Leapmotor’s presence beyond China and gives Stellantis the exclusive rights for the export and sale, as well as manufacture Leapmotor products outside China.
Notably, Malaysia is the second market to introduce Leapmotor, following its launch in Europe last month.
Morais is optimistic of a strong demand for the Leapmotor C10 in Malaysia due to its competitive pricing.
With a range of 477 km, the Leapmotor C10 is priced at RM149,000 until Nov 30, 2024, after which it will retail for RM159,000.
While currently focused on fully imported completely-built-up (CBU) units for Leapmotor, he said Stellantis is exploring plans for completely-knocked-down (CKD) local assembly.
“At the moment, with the government support that we get for CBU EV cars, it makes sense for us to maximise the support given by the government,” he added.
In 2021, Stellantis acquired a plant in Gurun, Kedah, with the aim of becoming its regional manufacturing hub, as part of its “Built in Asean for Asean” roadmap.
The automaker also established its India and Asia Pacific regional headquarters in Kuala Lumpur.
Earlier in March, Stellantis launched its national sales company in Malaysia with a dedicated team to direct and manage the marketing, sale distribution and aftersales in the country.
Regarding the plant in Gurun with a capacity of close to 100,000 units, Morais said it is currently only making Peugeot cars.
“We are studying to localise or CKD the Leapmotor here in Malaysia as well. Not just for that, all of the brands that we bring in, we are studying on how to bring it in and then how to localise it in the factory,” he added. That is an export plant as well and hence it’s for the regional tool. It is built in Asean for Asean. So, it is not just for Malaysia but we export across the region.”
Following its debut in Malaysia, Morais said Thailand and Singapore may be the next markets to follow closely.
Founded in 2015, Leapmotor has introduced a total of five models and already sold over 470,000 vehicles in China, with monthly sales exceeding 30,000 in August 2024.
Morais said “at least four (models) should be seen in Malaysia in the near future.”
Meanwhile, Steallantis Asean chief operating officer Daniel Gonzalez emphasised the company’s commitment to making Malaysia its hub for Asean operations.
“Malaysia is a key market for Stellantis, and was chosen as the first market of entry for Leapmotor in this region because there is a strong demand for EV,” he said.
He highlighted Stellantis’ intention to add value beyond vehicle sales by focusing on local sourcing, engineering, research, and development.
“Stellantis is not just another company selling cars but an organisation focused on creating value for Malaysia through regional warehousing, local manufacturing, and talent development,” he said.
Separately, Tengku Zafrul said the automotive industry contributes between 4% and 5% to national gross domestic product annually, and supports over 700,000 jobs today.
However, he said in 2023, Malaysia’s automotive sector recorded a total import value of RM62bil and export value of RM18bil, leading to a trade deficit for the sector.
According to the Malaysian Automotive Association, 6,617 battery-electric vehicles (BEVs) were sold in the first half of 2024, marking 112% year-on-year growth.
As of the first half of this year, Malaysia now has over 31,000 BEVs on the road.
Tengku Zafrul said as of Sept 30, over 3,171 charging stations have been installed nationwide, of which 813 are direct current fast chargers, on track to meet the target of 10,000 stations by the end of 2025.
