Leapmotor cuts 2026 profit guidance amid global expansion

Leapmotor has revised its 2026 net profit guidance downward by 40%, lowering the target from 5 billion to 3 billion yuan (approximately $446 million). Despite record sales and revenue growth in the first half of 2026—with revenues rising 57.2% year-on-year to 38.1 billion yuan—rising raw material costs and market uncertainty have compressed gross margins to 11.7%.

To support global expansion, the company has increased R&D and sales spending. Leapmotor aims to sell between 150,000 and 200,000 units outside of China in 2026. Stellantis, which holds a significant stake in the brand, manages Leapmotor International, the joint venture responsible for all sales outside of China.

In Mexico, the brand has officially debuted the B10 Design 2027MY, its first Ultra Hybrid vehicle in the country. Supported by Stellantis and Mopar, Leapmotor intends to capture at least a 2% share of the passenger vehicle industry in Mexico, leveraging Stellantis’s existing industrial and commercial infrastructure.