The strategic partnership between Stellantis and the Chinese automaker Zhejiang Leapmotor Technology Co. Is yielding rapid results, as Stellantis’s Leapmotor JV sales surging in Europe have disrupted the established electric vehicle hierarchy. In February, Leapmotor climbed to ninth place among all electric vehicle makes in the expanded European region, signaling a shift in how affordable EVs are penetrating the continent’s competitive landscape.
The surge was driven largely by the T03, a compact five-door city car that has become a catalyst for the brand’s growth. According to data released by Jato Dynamics, the T03 saw a 677% increase in novel-car registrations during the month, with 6,058 units recorded. This performance propelled the model to fourth place among battery-electric vehicles (BEVs) in the region.
The growth is anchored in aggressive pricing, with the T03 retailing in most European markets starting from 18,900 euros ($21,806). By leveraging the distribution networks and scale of Stellantis, Leapmotor is bypassing the typical entry barriers faced by new Chinese entrants, positioning itself as a high-volume alternative to traditional European city cars.
A Fragmented Transition for European Giants
Whereas the Leapmotor joint venture gains momentum, established European manufacturers are experiencing a volatile transition. Volkswagen continues to hold a strong presence, maintaining the highest number of models in the top 10 EV charts for February. However, the German giant is facing a paradoxical decline in actual registrations across its core ID series.
Year-on-year data reveals a cooling demand for several key Volkswagen models compared to the same period in 2025. Registrations for the ID.7 fell by 24%, the ID.4 dropped 15%, and the ID.3 decreased by 11%. This suggests that while the “electrification transition” is underway, consumer loyalty is shifting toward new value propositions and different price points.
Tesla remains the dominant force in the sector, maintaining its position as the No.1 EV brand. The company registered 17,534 units in February, representing an 11% year-on-year increase.
Market Share and Powertrain Trends
The broader European automotive market—which includes the EU, Norway, Switzerland, and the U.K.—saw a modest overall growth of 1.7% in February, totaling 978,190 registrations. However, the internal composition of these sales reveals a decisive move away from internal combustion engines (ICE).
ICE vehicles, which still hold significant share in markets like Germany and Poland, saw a 20% year-on-year drop, now accounting for only 29.9% of the total European market. In their place, a variety of electrified powertrains are vying for dominance:
- Battery Electric Vehicles (BEVs): Grew 16% year-on-year to 189,885 units, capturing a 19.4% market share.
- Plug-in Hybrids (PHEVs): Experienced a significant surge of 34%, reaching 96,952 units.
- Mild Hybrids: Expanded by 12%, now holding a 25.5% market share.
- Full Hybrids: Grew by 8%, maintaining a share just under 14%.
| Country | New Registrations |
|---|---|
| Germany | 229,000 |
| Italy | 174,000 |
| France | 151,000 |
| United Kingdom | 105,000 |
The Strategic Implications of the JV Model
The success of the Stellantis-Leapmotor venture highlights a new blueprint for automotive expansion. Rather than attempting to build a brand from scratch in a foreign market, the joint venture combines Chinese technological agility and cost-efficiency with the existing industrial infrastructure of a global giant. For Stellantis, this allows for a rapid infusion of affordable EV models to compete with the influx of other Chinese brands.
This shift is particularly evident in the “city car” segment, where the T03 is finding a foothold. As European cities tighten emissions regulations and consumers seek lower entry prices for electric mobility, the availability of a sub-20,000 euro EV becomes a critical competitive advantage.
Steffen Michulski, a senior consultant at Jato, noted that while electrification is clearly occurring, the performance of various manufacturers is varying significantly. According to Michulski, manufacturers are navigating a complex business environment as they transition through different electrified powertrain types.
What Lies Ahead
The trajectory of the Stellantis-Leapmotor partnership will likely serve as a bellwether for other legacy automakers considering similar alliances. The immediate focus for the JV will be the scaling of the T03 and the introduction of further models to fill gaps in the mid-size and SUV segments, where European demand remains high but price sensitivity is increasing.
Industry observers will be watching the next quarterly registration data to see if Leapmotor can maintain its top-10 position and if the T03 can sustain its growth rate amidst potential changes in EU import tariffs or local subsidies. The next major checkpoint will be the upcoming quarterly financial reports from Stellantis, which will provide more granular detail on the JV’s integration and profitability.
We invite our readers to share their thoughts on the rise of affordable Chinese EVs in Europe in the comments below.
