Leapmotor Executive Warns Automakers Against Exporting China's "Cutthroat Competition" Model

At the 2026 China Automotive Chongqing Forum, Xu Jun, Senior Vice President and Chief Operating Officer of Leapmotor, stated that Chinese automakers should avoid exporting the domestic "involutionary" competitive model to overseas markets. He emphasized that as Chinese new energy vehicle (NEV) companies collectively expand abroad, any misstep by a single company overseas could tarnish the reputation of the entire Chinese brand ecosystem—creating a situation where "all rise together or fall together." Xu noted that the automotive industry has transitioned from a high-growth红利 period into a new normal of modest profitability, making international expansion a necessity for Chinese brands. In the first quarter of 2026, Leapmotor delivered 110,155 vehicles globally, with over 40,000 units exported overseas—a year-over-year increase of 442%. In May alone, its overseas exports reached 20,168 units, ranking first among emerging EV makers. Leapmotor captured a 33.5% market share in Italy’s all-electric vehicle segment in March and achieved significant growth in markets like Germany and the UK. Since October 2023, Leapmotor has partnered with Stellantis Group to establish Leapmotor International, which oversees its overseas operations. The company now operates a network of more than 1,000 overseas dealerships, over 85% of which are located in Europe. Xu warned that replicating China’s prevalent price wars and specification-focused competition overseas could result in lower profit margins abroad than at home and risk branding Chinese automakers as “low-price, low-quality,” making it difficult to elevate brand image and pricing power later. Chen Jian, former Vice Minister of Commerce, also urged against transplanting China’s cutthroat domestic competition model to international markets. Xu proposed that Chinese automakers shift from merely selling products to exporting brand value, trust, and long-term credibility. He stressed prioritizing the quality of overseas expansion over speed, warning that failure to do so could lead to severe consequences within the next three to five years.