Leapmotor may be quite a newbie here in the UK, but it has already launched four cars in 18 months with the fifth about to appear in showrooms any day soon. It’s called the B03X and will be vying for sales in the highly-competitive B-SUV sector.
We caught up with Leapmotor’s UK Managing Director, Damien Dally, at the launch of the new model in Malaga, Spain, in order to find out how the company is doing and just why would-be EV drivers should check out a Leapmotor model.
Q: We are seeing so many new carmakers arriving from China – what makes Leapmotor stand out?
A: I think it's a really good question. You’re absolutely right, there's more customer choice than ever before. So actually, you know, having a clean, clear definition is super, super important. I think there are a couple of really key points. First of all, there are all these new brands, but none have the backing that we have up to 51 per cent shareholding in Stellantis, and this is so important because it gives the customer peace of mind.
Think about it. Already, there's an element of trepidation because customers are trying to go from thermal to electric. To then have to worry as to whether the company is still going to be there in 12, 24 months or five years' time is difficult.
And obviously, we can give that assurance that we are part of a much bigger organisation. So peace of mind is really important.
The other thing which I think we've tried to do with Leapmotor is the name – it’s interesting and quite memorable. I think there's a lot of things which we can really do with that to build the brand and again highlight differentiation. I mean, ultimately we're trying to get people to take the leap. So almost in our name, it's like it defines what we what we're trying to do.
And I think another point is we've tried to be super simple. We started with a blank sheet of paper and we've been given a lot of latitude and we discussed the disadvantages such as when you're starting from scratch, you have no history. The advantage is you have no legacy.
And actually when you're small, you could be negative and go, “I'm small”, but when you're small, you can also be nimble.
Now, some time ago, you'll recall there was some discussion that Apple was going to make cars. There was also some talk whether James Dyson was going to make cars. There was a lot of speculation and funky pictures in car magazines of simulations of what James Dyson's car could look like.
I'm less interested in what it looked like. It's more about how would they approach the business model? Would they do retailers? Would they do direct sales? But also, what would they offer as a product range? And one of the things which we discussed when we looked at how they brought their products to market was range. Now they were major disruptors in their industries, respectively. I mean, the iPod killed the Walkman, and the Dyson pretty much killed the Hoover, didn't they?
And that's where we took the inspiration to have one model, only one model, in the range.
That's a UK market thing, but it's super, straightforward and simple. Because what I like about it is if we were on TV saying our car's £29 995 or £299 a month or whatever, you know what it's like. Someone walks into a showroom and asks: "Well, where's the £30k car? It's got £36k on it” The answer might be it's got a sport pack. It's got 21-inch wheels. It's got this. It's got that. We don’t do that.
Q: Obviously, being within the Stellantis group you've got this huge parts bin. How much of an advantage is that?
A: This is the unsexy bit, but it's a really, really important issue. I mean, I get killed by the after-sales people if I say unsexy, but you know what I mean. It's the bit which, if this isn't right, nothing else works.
So, there's a lot in the media, and if you speak to insurance companies, it's one thing to bring a car from China in one piece. There are horror stories, and I won't mention any brands where vehicles have almost been written off because someone's knocked a wing mirror off and they can't get the part for nine months or this kind of stuff.
So, this again is one of the key differentiators. We use the same parts distribution system for Leapmotor that we do for Peugeot, Vauxhall, Alfa Romeo, Fiat etc.
We call it Distrigo parts hub, so in Europe we have 98 per cent parts availability, and in the UK alone we have just less than 80 per cent. So, I can get parts from Europe, super-fast.
We had a really big education job to do with the insurance industry because a lot of these insurers had been stung previously. So we've worked very closely with Thatcham, who have been great, and we've had regular meetings with the insurance industry. I think I'm in front of them again in October. We had them all in our office in July for a non-alcoholic cocktail evening.
Q: Does that mean you've basically got the same access as anyone who has a Peugeot, Citroen or Vauxhall to parts?
A: In terms of same access, in truth, just to be clear on it, our parts come from China, but the systems and processes to replenish and all that kind of stuff, 100 per cent.
Q: You are launching the B03X into the busiest EV sector. What makes it stand out? Why should people buy this?
A: First of all, we can give them a real peace of mind. They've got to get their heads around the fact there's a new car, a new brand on the bonnet. But we can give that real peace of mind. And our mission statement is really simple: we want to be ‘the’ best value electric vehicle brand, offering the highest level of tech.
When I mean highest level of tech, not the number of techs we give you, the technology is at the highest level, and highest level of specification.
Basically you get everything included in the price, and on that we really encourage our retailers to make comparisons if they're with the customer versus other brands on the specification. I mean, little things are invisible, like on the B10, the car has a heat pump. I'm not going to mention the brand, but that's a £1,200 option on the other car, but you don't see a heat pump.
Q: How are you going to attract a younger audience to the brand, and in particular this car?
A: This is an interesting point because historically the EV buyer has been slightly older, in their 40s or 50s. So, I mean, when I was at Fiat and we surveyed customers as to why the adoption of EV was slow, price was one of the main issues.
So, clearly, with these cars, price is less of an issue. On this car, I see the audience as two types. It could be funky, adventurous people with active pursuits like mountain biking in mind. So, it could be a couple who are really into driving down to Newquay to go surfing because it has all that storage space. And you can store the wet suits in the bin under the boot floor.
But equally, I think it's a really good family mover as well. You know, adults with a couple of kids.
But to answer your question as to how we attract the younger audience - first of all our price is massively attainable, but to appeal to them we're doing funky marketing activities.
So for B05, which we launched in yellow, so again not everyone's cup of tea, but funky. We did a big event at the Ministry of Sound in August, where we had a much younger audience. And we did a bungee jump in central London that sort of stuff.
So, we're taking our inspiration from the whole take a leap thing. This in itself, I believe, will start to attract a younger audience.
Q: How would you say Leapmotor is doing as a brand in the UK?
A: So, we sold year to date 9,300 vehicles. We are one per cent of the market in June, July, and August, and we're three per cent of the BEV market, so you could say that's good, that's bad, or whatever. The numbers behind the numbers are, I think, even more important than the number itself.
First of all, we've got a 65 per cent retail mix versus a battery electric vehicle industry average of 25. Now all customers are important, but retail - that's people buying with their own money. It's one thing to choose a car from a business list. It's one thing if you're a Motability user. But these are people who have paid tax on their income and chosen to buy a car. So I think that being two-and-a-half times the industry average is an impressive number.
Second point is we are 98 per cent battery electric vehicle, and the reason why we're doing that is because we're part of Stellantis, and Leapmotor is an enabler for Stellantis within the ZEV.
Chinese brands generally are at 30 per cent. I think if we did a high street survey of Coventry, most people would think all the new Chinese brands sell electric cars because that's what people think. But 70 per cent are non-battery electric vehicle.
We’re the opposite with that 98 per cent figure. Behind the number is a really good channel mix, and it's growing and growing and growing. Our market share overall, we were 0.5 per cent in Q1, we were 0.7 per cent in Q2. Watch this space, but I think we'll get 1.0 per cent in Q3.
So it's growing, and it's growing in the right channels and good steady growth. We started our journey 18 months ago, with 43 retailers, we will finish September with 90 retailers, but we will end the year with 100.
And we’ve got loads of new cars in the pipe-line as well. So, it's growing nicely.
Q: And there’s going to be a smaller Leapmotor model coming soon?
A: Everyone wants to talk about the next one. We should talk about the current new baby, not the one you haven't received yet. But it will be early next year.
Q: Back to the new baby then! If you had to pick three things about the B03X that would convince someone to buy it, what would they be?
A: Well, I'll be lazy because I'll cover them in one comment. So, I think it's in line with our philosophy: high tech, high spec, the standard. But I think this car is incredibly versatile and practical. You know, with the whole seat thing and it’s a great family mover. It’s in line with our mission statement of being the best value EV – something we need to be in every segment we play in.