Leapmotor, one of China’s strongest-performing electric vehicle (EV) makers this year, has taken a major step towards building cars locally for European customers after agreeing with shareholder Stellantis to add a line at a Spanish plant previously earmarked for Opel.

The Hangzhou-based company and Stellantis, owner of Peugeot, Fiat and Jeep, would jointly build Opel’s new fully electric C-sport utility vehicles (SUVs) and B10 models at the Figueruelas plant in Zaragoza, according to a statement released by the Franco-Italian carmaker on Friday. Production was expected to start as early as this year, it added.

The announcement came less than two months after Leapmotor opened its first overseas research and development hub in Munich, aimed at tailoring models to international customers.

The EV maker, 21 per cent owned by Stellantis, set up a joint venture known as Leapmotor International with the European shareholder in 2023 to promote its Chinese-made cars worldwide. The venture, 49 per cent owned by Leapmotor, leverages Stellantis’ global resources to bolster sales.

“Leapmotor, after achieving rapid growth on the domestic market, has reason to quicken the pace of its overseas expansion because its tie-up with Stellantis facilitates localisation of production in markets like Europe,” said Gao Shen, an independent analyst in Shanghai. “Stellantis also needs Chinese EV technologies to enhance its competitiveness.”

Stellantis said new Opel-branded electric SUVs built at the plant would become more affordable through its partnership with Leapmotor as the two companies joined efforts to improve supply chain efficiency.