Leapmotor Q1 2026 Sales Rise Amid Widening Losses and Declining Margins

Leapmotor delivered over 110,000 vehicles in the first quarter of 2026, achieving double-digit year-over-year growth. Revenue for the same period reached RMB 10.82 billion, up 8.0% year-over-year; however, net loss attributable to shareholders widened to RMB 390 million, a 200% increase compared to the same period last year. Gross margin stood at 9.4%, down 5.5 percentage points year-over-year. The company’s “low price + high specification” strategy drove sales growth, with monthly deliveries reaching 81,569 units in May. However, the rising share of lower-priced models and increased costs put downward pressure on gross margins. To improve profitability, Leapmotor is advancing its premium product lineup in the second quarter: it launched the D19 model in April, which garnered over 10,000 new orders in May alone, and began pre-sales for the D99 in June. Management expects Q2 deliveries to reach between 240,000 and 250,000 units, with gross margin rebounding to 12%–13%. Nevertheless, achieving the company’s full-year net profit target of RMB 5 billion remains challenging, as the current average loss per vehicle stands at approximately RMB 4,000.