Leapmotor's "Evergreen Tree" is back

Author | Chai Xuchen

Editor | Wang Xiaojun

"If Leapmotor is still around in 30 years, the C11 will definitely still be here. It needs to iterate continuously like Toyota's Corolla, turning this classic product into a brand evergreen."

On July 10th, Zhu Jiangming, Chairman of Leapmotor, who has never relied heavily on "stories" to sell cars, expressed his feelings at the launch event for the 2025 Leapmotor C11.

Riding high, Leapmotor, which became the sales champion among new forces in the first half of the year, is charging ahead with the new C11, known as the "half-price Li Auto." The new C11 comes in both pure electric and extended range versions. The pure electric version is priced at 149,800 to 165,800 yuan; the extended range version is priced at 149,800 to 159,800 yuan, with starting prices comparable to the old model, but the top configuration has been reduced by 40,000 yuan.

After the price announcement, the explosive potential of the new C11 has already become apparent. However, the market competition is becoming increasingly fierce, and how to update a classic car that has already been validated by the market to increase its winning odds? Leapmotor's answer is to simplify the design while enhancing the experience.

Cao Li, Senior Vice President of Leapmotor, stated that this annual facelift of the C11 involves six major dimensions: styling, cabin, range, assisted driving, driving control, and safety, with nearly 50% of the core components undergoing "blood replacement" updates.

Firstly, in terms of interior and configuration, the new C11 can be said to be completely revolutionary. The current three-screen design has been replaced with a 17.3-inch floating central control screen; and this time, the "affordable Li Auto" is also equipped with a large-sized AR-HUD; it also features the Leapmotor OS 4.0 Plus system, the 8295P chip, and integrates DeepSeek and Alibaba's Tongyi Qianwen, providing a smoother voice interaction experience.

On the other hand, in the fiercely competitive field of intelligent assisted driving, the new C11 has also adopted an all-in attitude, equipped with 27 driving assistance sensors, including a top-mounted lidar, utilizing the Qualcomm 8650 chip with 200 TOPS computing power, and introducing end-to-end large model technology, supporting advanced functions such as high-speed navigation, urban commuting navigation, and memory parking.

As Leapmotor's sales champion, even in May of this year, at the end of the vehicle's life cycle, the C11 still ranked fourth in sales among medium-sized new energy SUVs with 8,225 units sold, only behind the Model Y, Song L DM-i, and its own C10.

It is worth mentioning that the new C11 chose to launch at its "birthplace," the Hangzhou Canal Cultural Center, four years ago. Zhu Jiangming admitted that four years ago, people still had doubts about Leapmotor's prospects; but four years later, more and more people are saying that Leapmotor is getting better and better.

Today's consumers may not know that as the first SUV product of the Leapmotor brand, the C11, which first appeared four years ago, did not receive much attention, and even during the development phase, the C11 nearly faced cancellation.

Looking back to 2019, Leapmotor's first car, the S01, had poor sales, and with the arrival of a downturn in investment in the new energy industry, the company's funds were extremely tight, forcing the promising C11 project to be put on hold "At that time, Leapmotor really didn't have enough money," Zhu Jiangming recalled, saying that the beginning of 2020 was the most difficult time he had ever encountered in his life.

In the "cold winter," Zhu Jiangming decided to return to technology and products to break the deadlock after careful consideration. He realized two things: first, new energy is an inevitable trend, and the cold winter will eventually pass; second, the C11 product has a market, and as long as a competitive product is made, achieving a configuration of 300,000 to 400,000 yuan at a price of 150,000 to 200,000 yuan can be successful.

The following year after the C11 was launched, the release of the extended-range version made the car a hit, with annual sales exceeding 80,000 units, making it the number one in the new energy medium SUV market that year. Over the past four years, it has become the second highest cumulative sales in the new energy medium SUV market, only behind the Tesla Model Y.

The success of the C11 also changed Leapmotor's sales structure, which was primarily based on the pure electric microcar T03. The subsequent improvement of the entire C series matrix helped Leapmotor achieve both quantitative and qualitative growth, allowing it to initially establish a foothold in the 150,000 yuan+ market.

In the first half of this year, Leapmotor's delivery volume has surpassed 220,000 units, a year-on-year increase of 155.8%, making it the sales champion among new forces. The delivery volume in April and May has stabilized at around 45,000 units. With the capacity ramp-up of the Jinhua factory, Leapmotor is fully prepared for the production capacity supply of the C11, and its overall delivery capability is also improving.

"I have always said that Leapmotor has only played two cards so far, and there are still many cards to play," Zhu Jiangming stated with a touch of Versailles. "In the second half of this year to the end of next year, our A, B, C, and D models will be gradually completed."

Clearly, Leapmotor seems to want to reach a higher monthly sales ceiling. However, in Zhu Jiangming's view, Leapmotor has just achieved "victory in the anti-Japanese war" and is still in a state of lacking everything. If it cannot maintain its current growth rate, it may fall back again. How Zhu Jiangming and his Leapmotor will continue their high growth momentum and establish a solid leading position in the fierce market competition is yet to be seen.

The following is the transcript of the dialogue between Wall Street Insights and Leapmotor Chairman and CEO Zhu Jiangming, Senior Vice President Cao Li, and Vice President Zhou Ying (edited):

Q: The price difference between the entry-level and flagship versions of the C11 is only 15,000 yuan, and the price difference for the pure electric version is 10,000 yuan. What is the pricing logic behind this?

Cao Li: I think it's not about being oriented towards selling high configurations, but rather recommending the maximum price-performance ratio to users. The value difference of the high configuration of the C11 exceeds 30,000 yuan. Based on cost calculations, we should take a certain gross profit and give the maximum discount to users, so that everyone feels that every product we offer is worth more than what they pay.

Q: The positioning of the C11 seems to have moved up a bit. Does this mean that Leapmotor is more confident at this stage?

Zhu Jiangming: The entire C11 already has over 250,000 users, and our sales are increasing every year. Now, the C11 can still sell for over 100,000 yuan in the second-hand market. Among new energy vehicles, we may have the highest resale value after Tesla.

The reason is that Leapmotor's full configuration exceeds expectations, adding essential configurations for users. We found that the selection rate for Napa leather seats was over 50%, and now we directly standardize them. Although the price seems to be 10,000 yuan more expensive now, the original optional installation was even more expensive. Therefore, we hope to raise the overall price while providing users with more configurations, enhancing their sense of value We believe that the overall consumption power level in China is in the price range of 150,000 to 200,000, and consumption has not downgraded but is still upgrading. We emphasize that Leapmotor is always committed to upgrading products for users. Although spending 150,000 means a more upgraded experience, it is equivalent to purchasing a product worth 250,000.

Leapmotor's strategy has also undergone some changes. Initially, we focused on self-research for the three electric systems, intelligent cockpit, and intelligent driving. Now, we also need to self-develop high-value-added components. This time, the AR-HUD for the C11 has been in development for a long time; our seats started supplying last month, and we will expand self-research and manufacturing of more core components.

Q: What strategic considerations are behind the new C11, and will Leapmotor's technical narrative affect resonance with consumers?

Zhu Jiangming: Although we are telling stories today, in reality, we are all about technology telling products. Leapmotor is a technology-driven enterprise. We hope to maintain continuous product competitiveness through technological leadership.

From C10, C16, to C11, we have quickly moved the entire platform to the most suitable technology available today. For example, 800V high voltage and silicon carbide electric drive. In terms of intelligent driving, we are also using the LEAP3.5 developed last year, incorporating laser radar intelligent driving as a luxury equalizer. This year, over 50% of Leapmotor products will feature high-level intelligent driving with laser radar.

Leapmotor always leverages its systematic capabilities to keep its products at the forefront of the industry, and the C11 is a reflection of this strategy. This year, we can achieve the sales target of over 500,000 units proposed last year.

Q: Does Leapmotor care about the title of sales champion? What will happen if one day it is no longer the sales champion?

Zhu Jiangming: I think it's all temporary. Many who have been sales champions have now disappeared, such as WM Motor, Neta, and the "Wei Xiaoli" trio. So even if you are the sales champion among new forces, what does it matter? We are still on the path of progress, and if we want to stay at the table of new energy vehicles, there is still a long way to go.

The trend of new energy is irreversible. The focus is on how to increase sales faster and gain a larger market share in the shortest time possible. Leapmotor is not yet at the forefront; we are just ensuring we are not eliminated. Fortunately, our weekly sales are close to 10,000 units, ranking about seventh or eighth as a group, which is an improvement of two places from last year, maintaining a relatively good momentum.

I have always said that Leapmotor has only played two cards so far, and there are many more cards to play. In the second half of this year and by the end of next year, our ABCD models will be successively completed.

Q: How does Leapmotor summarize the past ten years?

Zhu Jiangming: My summary is that when Leapmotor went public, it completed a 25,000-mile Long March, and we have now arrived in northern Shaanxi, in Yan'an. Today, Leapmotor has entered a new stage, starting to approach a state of balance without losses. We have completed the Anti-Japanese War, and the next step is to enter the Liberation War. If we can win the Liberation War, then Leapmotor will have emerged successfully.

Q: Leapmotor has been advancing rapidly for ten years; what concerns remain internally?

Zhu Jiangming: We have just won the Anti-Japanese War, and when we lacked everything, we only slightly turned a profit for the first time in the fourth quarter of last year. We are still on the edge of the breakeven point. If Leapmotor cannot quickly increase sales and strengthen profitability and market share, it could be very dangerous, and we might go down again At this stage, we still hope that Leapmotor can continue to grow in sales. Only in this way can it truly establish a foothold and have a place in the new energy vehicle industry.

Q: When will Leapmotor's market value break 100 billion?

Zhu Jiangming: Every shareholder thinks this way; I believe it's just a matter of time.

Leapmotor has made significant progress in the capital market, rising from a low of over twenty to a high of 65, with trading volume increasing from millions to tens of millions, and at times reaching over a billion. Many funds have started to pay attention to Leapmotor. Therefore, with continuous growth in performance in the future, Leapmotor will still have great opportunities in the capital market.

Q: In terms of Leapmotor's cost logic for car manufacturing, how can it avoid cutting corners while making consumers feel that the products are relatively cheap and absolutely good?

Zhu Jiangming: If the components are not manufactured by Leapmotor itself, we must choose the best suppliers, as this is the only way to ensure a competitive advantage. How to control costs is more about solutions—how to select good solutions and how to have innovative ideas, which can allow you to have lower costs than others.

How do you do integration? If it originally required three parts, and you can reduce it to one, then you can save costs. Therefore, continuous innovation is necessary to ensure that costs change every day and every year, rather than just negotiating prices with suppliers, as bargaining is always limited. The industry does not have a Lei Feng to serve you, so ultimately it relies on your own capabilities and innovations to gain this cost advantage.

Q: What was Leapmotor's overseas sales in the first half of the year?

Zhu Jiangming: Overseas sales in the first half were over 20,000. I believe there are greater opportunities in the second half, as the first half was in a transition phase. After the release of the C11, the C series has completed the annual and mid-term model transitions, so I think the second half is very promising.

Q: Four years ago, you attended the C11 launch event, when Leapmotor was developing its own chips. Now you have chosen suppliers; what is the thinking behind this?

Zhu Jiangming: Currently, I counted 12 manufacturers developing smart driving chips. NVIDIA is definitely the pioneer, Qualcomm is a giant, and there are also Horizon, Black Sesame, and the "Wei Xiaoli" (Nio, XPeng, Li Auto), with at least 12 companies in total.

China's demand is the strongest now, with over 10 million new energy vehicles expected to require 10 million chips in the future. Currently, at least 7 nanometers are needed; otherwise, it won't be competitive, and an investment of at least one billion yuan is required. The competition is fierce, so we feel it's not suitable.

Moreover, in the next two years, the technology will be upgraded from 5 nanometers to 3 nanometers. I think Leapmotor should focus on its own business. At that time, we really did not have AI chips; Mobileye sells algorithms and chips together, not just chips. So, coincidentally, Dahua also had a demand for AI chips for facial recognition. We combined Dahua and Leapmotor to develop a chip called Lingxin 01, which is the process. From now on, with large-scale applications, it is still necessary for more professional companies to handle this.

Q: What adjustments will Leapmotor make in its strategy and tactics in the next phase? Zhu Jiangming: In the first phase, we have developed some capabilities. Whether it is sales, our technological capabilities, or profitability, we have entered a new stage.

Leapmotor is fully confident in achieving profitability for the entire year. Moving forward, we still need to focus on our capabilities and the domestic and international markets, striving for a significant breakthrough within the next three years to truly become a car manufacturer.

Only car manufacturers with annual sales of over one million vehicles can achieve stable profitability, just like in the traditional fuel vehicle era. Companies like Great Wall and Geely have gone through the process of selling over a million vehicles to become well-known car manufacturers, and Leapmotor must also go through this process.

This year, we have set a sales target of over 500,000 units. First and foremost, we need to achieve this year's target. For the subsequent ABCD series, we have only released two models so far, with two more models set to launch by the end of this year and next year. We are still confident about future growth.

The premise is to take one step at a time. We want to ensure that, like the C11, sales can only grow each year, and we also hope that each model, including the C10 and C16, can achieve annual growth, rather than a situation where one model's gain is another's loss, which would hinder overall performance. Therefore, we need to succeed with one model at a time, making it a star in its price segment, as this is the only way to ensure continuous success