The best SUV under RMB 500,000, with full-domain self-research and development, equipped with LEAP3.0's six core intelligent electric technologies, LEAPMOTOR introduces the C10 as a new king.
The best SUV under RMB 500,000, with full-domain self-research and development, equipped with LEAP3.0's six core intelligent electric technologies, LEAPMOTOR introduces the C10 as a new king.
According to the Zhitong Finance APP, on January 10th, the 2024 LEAPMOTOR Full-Domain Self-Research and Development Open Day was held in Hangzhou, where LEAP3.0's six core intelligent electric technologies were released. The company also explained the underlying technology of these six core technologies to users and the media in the form of public lectures. Additionally, the company announced that the first global model under LEAP3.0, the C10, has started pre-sales, with both the pure electric and extended-range versions priced in the RMB 150,000 to 180,000 Range.
LEAPMOTOR's founder, Chairman, and CEO, Zhu Jiangming, stated at the open day that all six core technologies of LEAP3.0 have been fully mass-produced and are available now, not as Futures. This is different from competitors, such as the SU7 released by Xiaomi on January 10th, which has not yet been mass-produced and has no announced price, making it more of a Concept car. In contrast, the C10 will be available for test drives in February and can be delivered in March.
It is often said that the New energy Fund Cars market in 2023 was very competitive, but 2024 will be even more so, with higher performance and better value-for-money models concentrated in the RMB 300,000 Range. The market is accelerating its reshuffle, and those who survive the price war will undoubtedly be brands with strong technological foundations and full-domain self-research and development capabilities. LEAPMOTOR is one of the few top new force brands in the market with full-domain self-research and development. After the launch of the C10, its competitive advantage is significant, solidifying its position in the RMB 150,000 to 200,000 Range.
With the six core technologies of LEAP3.0, LEAPMOTOR ushers in the era of software-defined Cars.
In the traditional RBOB Gasoline Cars era, the three major components—engine, transmission, and chassis—were often the focus, and due to their relatively mature and homogenized technology, the 'brand' often determined the value. In the current New energy Fund Cars era, not only are the three major components (Battery, electric control, and motor) important, but there are also higher demands for intelligent experiences such as smart cockpits and intelligent driving systems. Smart Automobiles have become the hallmark of the New energy Fund Cars Industry.
Competition in the new energy vehicle (NEV) market is intense, and to stand out in the price war, it is necessary to have a greater cost advantage than competitors. Full-domain self-research and development (R&D), which involves building the most critical systems of a car from the ground up, including power, intelligent driving, cockpit, and electronic and electrical systems, can significantly reduce costs while enhancing product strength and risk resistance. Since its founding in 2015, LEAPMOTOR has consistently adhered to the full-domain self-R&D route for core technologies.
LEAPMOTOR's full-domain self-R&D has experienced three significant historical milestones in 2019, 2021, and 2023, with products continuously evolving. The LEAP architecture has progressed from the first generation to the third, transitioning from a distributed to a domain control and then to a central integrated electronic and electrical architecture. LEAP 3.0 truly ushers in the era of software-defined vehicles.
LEAP 3.0 encompasses six core intelligent electric technologies: a globalized vehicle architecture, a four-leaf clover central integrated electronic and electrical architecture, a new energy gold powertrain (CTC battery + oil-cooled electric drive), an intelligent cockpit powered by Qualcomm Snapdragon 8295, and intelligent driving capabilities for both city and highway use.
LEAPMOTOR's globalized vehicle architecture has the highest industry-standard commonality rate of 88%, covering A0-C class vehicle models. Each platform supports the development of SUVs, sedans, and MPVs, and is compatible with both pure electric and range-extended product development. The four-leaf clover electronic and electrical architecture serves as the 'decision-making brain,' acting as the industry's first four-domain integrated central supercomputing platform. It integrates the power domain, body domain, cockpit domain, and intelligent driving domain, with control units including left, right, and rear domain controllers. This setup provides users with over-the-air (OTA) updates, higher-level intelligent electric vehicle experiences, and continuous innovation.
In the three key components of new energy power, the company showcased its self-developed CTC 2.0 battery-chassis integration and smart oil-cooled electric drive, forming a gold powertrain. These technologies are at the forefront of the industry. Compared to CTP batteries, CTC batteries offer higher integration, leading to enhanced safety, more flexible battery layout, and better body torsional stiffness. Oil-cooled electric drives, compared to water-cooled ones, have advantages in reliability, overall efficiency, and sustained power output. The combination of CTC batteries and oil-cooled electric drives is a crucial factor to consider when purchasing a new energy vehicle.
As a configuration for users seeking intelligent experiences, the company demonstrated its self-developed intelligent cockpit, offering a fully immersive interactive experience with multi-layered seat structures for added comfort. Powered by the Qualcomm Snapdragon 8295, the AI computing power reaches 30 TOPS, which is twice that of the 8155 CPU. The system supports voice control across all domains, providing a leading human-machine interaction experience in the industry. Additionally, it enables super seamless OTA updates. The self-developed intelligent driving system, equipped with 30 high-performance sensing elements and high-computing modules, supports full-scenario experiences in both city NAC and highway NAP. It achieves a tri-functional integration of cabin, driving, and parking with a single 8295 chip, and introduces NAC (all-time ACC) navigation-assisted cruise control. Users only need to hold the steering wheel, and the vehicle will autonomously control speed, recognizing traffic lights to perform turns, U-turns, and straight driving in urban environments without needing to open the city. Compared to peers, LEAPMOTOR takes a more practical approach, acknowledging that its autonomous driving technology has not yet reached the level of complete hands-free and feet-free operation. The company does not overly promote the capabilities of its autonomous driving or engage in various city-opening activities. However, its level of technology is already among the leading tier in the industry. Notably, the C10 is a product that integrates all six LEAP 3.0 technologies, marking the beginning of the 2024 'high value-to-price ratio' technology battle in the industry.
The C10, with its high value-to-price ratio, is unmatched in its class, and the company's global strategy is poised for launch.
LEAPMOTOR is a steady and focused technology player, diligently working on full-domain self-R&D, and has earned consumer recognition, successfully entering the top tier of new force brands. In 2023, it ranked third with sales of 144,200 units, shifting the ranking of the first-tier new force brands from 'NIO, Xpeng, Li Auto' to 'Li Auto, NIO, LEAPMOTOR.' LEAPMOTOR focuses on creating high-quality products, developing one or two models with each technological iteration, such as the C11 and C01, based on the LEAP 2.0 architecture. The C11 became a best-selling product in the market. In 2024, the C10, built on the LEAP 3.0 architecture, is expected to generate high market expectations for another hit.
According to the press release, the C10 has a higher competitive advantage compared to vehicles in the same class, such as the most comfortable seating, the best rear-seat comfort, and the most versatile space configurations. It is also the most intelligent, with the new generation LEAP OS offering a visual and interactive experience surpassing HarmonyOS, and the Leapmotor Pilot3.0 autonomous driving system and hardware capabilities reaching L3 redundancy levels. In terms of safety, it has a body torsional stiffness of 42,500 N.m/°, surpassing Rolls-Royce, and real-time AI monitoring ensures the safety of the three electric systems.
Integrating six self-developed technologies from LEAP3.0, the high-value-for-money C10 leaves no room for competition in the same class. The pre-sale price Range for the extended-range version is RMB 151,800 to 181,800, and for the pure electric version, it is RMB 155,800 to 185,800, solidifying its market share within the RMB 200,000 range. Among the C10's competitors, there are virtually no rivals at the same price point, making it more cost-effective than the similarly configured Xpeng G6 and Li Auto L7.
Autonomous driving and safety are the two most important factors for consumers when purchasing a vehicle. In terms of autonomous driving, the LEAPMOTOR C10 supports NAC navigation-assisted cruise and NAP high-speed intelligent navigation, and is one of the first in the Industry to be equipped with the Qualcomm Snapdragon fourth-generation cockpit platform, providing ultra-high computing power and leading among new energy car manufacturers. In terms of safety, the C10 leads the Industry in body strength, pedestrian protection, and three-electric safety technology, with 73.6% of the vehicle using high-performance materials, including Aluminum Alloy.
At the beginning of 2024, LEAPMOTOR launched the C10, which made it difficult for competitors to cope. Xiaomi did not announce the pre-sale price at the SU7 launch, but several brands subsequently held new product launches, with prices mostly under RMB 300,000. The introduction of the C10 will likely force other newly launched brands to lower their prices. Fortunately, besides Xiaomi, it is expected that no new 'new energy car manufacturers' will emerge in the future.
Zhu Jiangming stated, 'Competition is a good thing. Only through intense competition can the advantages of new energy cars be highlighted, allowing them to quickly gain market share from traditional RBOB Gasoline-powered vehicles.' Notably, the C10 is aimed at the global market, with plans to launch domestically in the first quarter of this year and enter the European market in the third quarter. Zhu Jiangming said that the C10's overseas expansion will initially target Europe, Australia, and New Zealand, with the progress in the European market being actively deployed. The company hopes to leverage Stellantis' global business network to accelerate the C10's overseas market expansion.
The Industry has entered the second half of the 'technology war,' with full-domain self-research giving LEAPMOTOR a leading edge over its peers.
As the Industry becomes increasingly competitive, users benefit, but for car manufacturers, it tests their capital endurance. Without a cost advantage or if they blindly expand, they will inevitably face financial difficulties and be forced out of the market. LEAPMOTOR understands the importance of Cash / Money Market flow, and its full-domain self-research allows it to take the initiative in reducing costs and increasing efficiency. The company began a comprehensive optimization of its products' configurations and costs in September 2022.
In Q3 2023, the company achieved a positive gross margin for the first time, at 1.2%, and attained self-sustaining Operation. The net Cash / Money Market inflow from operational activities in Q3 was RMB 1.4 billion, and combined with Q2, the total net inflow reached RMB 4.162 billion. As competitors' losses widened due to the price war, the company managed to improve its profitability and Cash / Money Market flow at a visible rate quarter by quarter.
Jiangming Zhu stated that the positive gross margin is due to comprehensive cost control and optimization of products, with the third round of cost reduction measures implemented in Q4 2023. Another factor is the significant decrease in core Battery costs. In 2024, the company aims to further improve cost efficiency for models C11, C01, and C10. The company adheres to the principle of offering high-quality, affordable vehicles, prioritizing users. Its product pricing is consumer-friendly and offers a high value-to-price ratio. The confidence in full self-research and development also allows more flexibility in pricing. In Capital Markets, LEAPMOTOR actively introduces industry and cooperative funds, with established partners including the international giant Stellantis.
The period of aggressive expansion funded by substantial capital has passed, and the surviving automakers have entered a phase of intense competition based on technological strength. LEAPMOTOR’s self-research and manufacturing account for 70% of the vehicle's total cost, providing a strong competitive edge. The launch of C10, featuring several industry firsts such as the first four-domain integrated central domain control, the first cockpit-integrated sensing system, the first NAC function without city unlocking, and the first seamless OTA upgrade, is offered at a price under RMB 200,000, making it a highly anticipated model with the potential to become a market hit, driving continuous profit improvement and Cash / Money Market Inflow.
In addition to C10, the second model based on the LEAP3.0 six self-researched technologies, C16, will be released this year. 2025 will be a significant year for new product launches, with five to six new models planned to meet market demand. In terms of distribution channels, the company pioneered the “1+N” model domestically, regionalizing Dealers to reduce competition and enhance market penetration. Overseas, with the support of Stellantis, LEAP3.0 products have a natural advantage in entering foreign markets.
Overall, the 2024 LEAPMOTOR Full Self-Research Open Day was packed with valuable content. Management provided a comprehensive overview of its technological evolution and the latest LEAP3.0 six self-researched technologies. As the first model integrating numerous advanced features, C10 is expected to be the best SUV under RMB 500,000, compared to its peers. With a price Range of RMB 150,000 to 200,000, C10 is expected to be a hit, though deliveries will start in March, and significant performance gains are expected in Q2.
The New energy Fund Cars Industry has entered the second half of the 'technology war.' Whether LEAPMOTOR, with its full self-researched technology, can continue to lead remains to be seen. We will wait and see how time validates this.