Leapmotor launches A05, taking aim at entry EV market led by Geely Xingyuan

Leapmotor launches A05 compact EV, targeting entry market led by Geely Xingyuan

sentiment 0.20 · materiality 0.60 · impact 0.12 · surprise — · confidence 0.80

horizon 0-6m · tickers 9863.HK, 0175.HK, 9973.HK, 1211.HK

Leapmotor launches new model to compete in fiercely competitive sub-100,000-yuan segment

Leapmotor (HKEX: 9863) officially launched the A05, a compact all-electric hatchback, in Hangzhou on Tuesday, with prices ranging from 63,900 yuan ($9,410) to 90,900 yuan.

The launch event had originally been set for August 10, but was pushed back by a day as Typhoon Dolphin made landfall in Zhejiang province.

The A05 comes with 39.8-kWh and 53-kWh lithium iron phosphate (LFP) battery packs, giving it CLTC range of 405 km and 510 km respectively.

Its single motor is offered in 70-kW and 90-kW versions, with a top speed of 160 km/h. The long-range variant can charge from 30% to 80% in 16 minutes.

Smart features are a major selling point. The car has a Qualcomm 8295 cockpit chip, an 8.88-inch instrument cluster, a 14.6-inch center display and a 12-speaker audio system.

Starting with the 510 LiDAR version at 85,900 yuan, the A05 gets LiDAR and a Qualcomm 8650 chip, supporting 43 assisted driving functions including door-to-door navigation.

Leapmotor said the A05 is the only premium hatchback in its class to offer LiDAR and door-to-door capability.

The car measures 4,200 mm long, 1,800 mm wide and 1,560 mm tall, with a wheelbase of 2,605 mm. Trunk space starts at 474 liters and expands to 1,308 liters with the rear seats folded down.

For a limited time, buyers get benefits worth up to 10,680 yuan, two years of interest-free financing and four lifetime free warranty items.

The A05 is critical for Leapmotor. The company delivered 101,267 vehicles globally in July, up 102.01% year-on-year and its first month above 100,000 units.

Still, its 457,754 deliveries in the first seven months represent only about 46% of its 1 million annual target. That leaves it needing more than 108,000 units a month over the remaining five months.

The A05 is the second model on the A platform after the A10 small SUV. It is positioned for urban commuting and aimed mainly at young female consumers.

The A10 went on sale in March at prices from 65,800 yuan to 86,800 yuan, and sold 26,424 units in July.

China's sub-100,000-yuan segment is fiercely competitive. Geely Auto 's (HKEX: 0175) Xingyuan led in July with 32,306 units, while the Wuling Bingo Pro and Chery 's (HKEX: 9973) QQ3 EV each topped 10,000 units.

The A05 will also compete directly with BYD 's (HKEX: 1211) Dolphin, which sold 34,910 units in July, up 75.74% year-on-year.

($1 = 6.7900 yuan)