An electric family SUV for €6,000? Leapmotor's president thinks it's possible.

Virtually all mid-size electric SUVs in the C-segment market – which are over 4.5 metres long and 1.8 metres wide – sold in our market today are in a price range of between 30,000 and 45,000 euros. But the CEO of the Leapmotor group, the Chinese Zhu Jiangming, believes that in the not-too-distant future "it will be reasonable for an electric family SUV to cost around 50,000 yuan", around 6,000 euros at the current exchange rate, as he has stated in a interview with a Chinese media outlet coinciding with the opening of the Hong Kong Motor Show.

Zhu Jiangming bases his prediction on the "lowering cost of mass production" of items such as electronics, aluminum, plastic, and lithium batteries. However, the CEO of Leapmotor, a Chinese manufacturer 20% owned by the Stellantis group, does not set a specific date and specifies that his prediction applies only to the Asian market, especially China and other emerging markets, and not to Europe and North America.

Leapmotor is one of the emerging manufacturers in China, and in recent years—especially thanks to the capital boost from the Stellantis Group in 20204—it has specialized in SUV-type vehicles with electric or electrified mechanics. The brand already sells some small models in our market, such as the Leapmotor C10 and the Leapmotor T03 (one of the cheapest electric cars currently, with a sale price starting at €18,000). This summer it plans to launch its new electric model, called the Leapmotor B10, which will be a reference SUV segment for Zhu Jiangming. It is expected to be priced at around €160,000 or €170,000 in China, about €20,000 at the current exchange rate, and will very likely end up being right around €30,000 in Europe for the entry-level versions.

A bold prediction, even in China

There is currently no electric car in China that costs 50,000 yuan. The cheapest model on the market today in the Asian giant is the small BYD Seagull city car (sold here as in Dolphin Surf and was introduced a few weeks ago), with a price for the entry-level versions of 56,800 yuan (about 6,800 euros at the current exchange rate), 18,780 euros in our market, apart from promotional discounts and institutional aid.

It seems very unlikely, then, that a versatile family electric SUV could reach the 50,000 yuan or 6,000 euro threshold even in China, but Zhu Jiangming believes that the key to lower electric car prices will be technological progress, direct competition, and the lower cost of microchips. Jiangming himself makes a comparison with consumer electronics in the interview based on market developments, and recalls that "a 100-inch television costs around 700 euros and an air conditioner the equivalent of 150 euros" thanks to the development of microchips.

The microchips that the CEO of Leapmotor is referring to are the SOC system (system-on-chip), a microchip that integrates several electronic components into a single physical element, such as the CPU, CGU, memory, controllers, and other modules that support connectivity and artificial intelligence. In modern vehicles, the SOC system is responsible for the infotainment system, electronic driving aids, cameras, sensors, and navigation system, and is a core and central element of vehicle operation.

Zhu Jiangming's statements have not gone unnoticed in China, and some executives at other major Chinese automakers, such as Wei Jianjun, CEO of Great Wall Motor, have warned of the danger of a "potential price war" within the Chinese market, which could cause a significant reduction in the operating profit margins of major brands. Major European automakers, for their part, are concerned about the increasingly real threat posed by Chinese manufacturers.

It seems that in the Old Continent we are still a long way from seeing all electric roads at really low prices, which could be a real earthquake for an automotive industry that has not fully positioned itself in the process of transition to electric cars and that cannot (and probably does not want to) compete with the prices already offered to Chinese products.