Stellantis will begin selling electric vehicles from Chinese partner Leapmotor in nine European countries starting in September and in other regions to follow.

This was announced by CEO Carlos Tavares in Hangzhou, China, headquarters of Leapmotor, adding that vehicle sales of the joint venture between the two groups will be extended to South America, the Middle East and Africa starting in the fourth quarter of 2024.

It will start with the T03, a compact A-segment car for urban use, and the C10 SUV with D-segment dimensions, but the goal is to offer at least one new Leapmotor model per year for the next three years.

A European network of 200 dealers will be reached by the end of the year, rising to 500 outlets by 2026.

"We don't want to leave the €20,000 end of the market to our Chinese competitors," Tavares said. "You can expect the T03 to cost less than 20,000 euros in Europe."

Chinese electric car giant BYD aims to launch its Seagull model in Europe for less than 20,000 euros.

The joint venture, called Leapmotor International, is 51 percent owned by Stellantis and aims to sell Leapmotor electric vehicles outside China. It also aims to manufacture them outside the country by relying on Stellantis' industrial presence.

A Stellantis spokesperson clarified that there are no plans to sell or manufacture Leapmotor vehicles in the United States.

The deal is part of a broader partnership that saw Stellantis announce last year that it was buying 21 percent of Leapmotor in a $1.6 billion deal.

With the joint venture, Stellantis has exclusive rights to build, export and sell Leapmotor products outside China. This is a first for a Western automaker at a time when Chinese manufacturers such as BYD, Chery and Dongfeng are announcing or building plants in Europe.

The joint venture "allows us to accelerate in the market with stylish and affordable electric cars," Tavares said during the official launch event with Leapmotor founder and CEO Zhu Jiangming.

Italy, Germany, France, Spain and the Netherlands are among the European countries where Leapmotor models will be sold, he added.

Neither Tavares nor Jiangming gave details on where Leapmotor vehicles might be produced in Europe.

However, Tavares said that the Stellantis plant in Tychy, Poland, could be a possibility

(Reporting Gianluca Semeraro, editing Stefano Bernabei)