China's FAW buys US$534 million stake in Leapmotor as EV firm sees deliveries jump in 2026

Core Insights - Leapmotor has become the first Chinese EV manufacturer to receive investment from a state-owned enterprise, FAW Group, which acquired a 5% stake for 3.74 billion yuan (US$534 million) [1][2] - The investment reflects growing investor confidence in Leapmotor, despite bearish sales forecasts for mainland China's car market [2] - Leapmotor aims to achieve annual deliveries of 4 million units in 10 years, which would position it among the world's top 10 car vendors [3] Investment and Strategic Developments - FAW's investment will facilitate joint development of new EV models with Leapmotor, enhancing management efficiency and brand awareness [4] - Leapmotor is expected to deliver 1 million vehicles in 2026, representing a more than 60% year-on-year sales increase, potentially making it the No. 3 EV maker in mainland China [5] - Leapmotor has been a top vendor in the competitive mainland EV market, with full-year sales expected to exceed 600,000 units this year [6]