'Not many' Chinese car brands will survive, Leapmotor executive says

Not many of the Chinese car brands expanding internationally will survive over the longer term, according to a senior Leapmotor executive.

Speaking with media, including CarExpert, at the international launch of the Leapmotor B03X in Spain, Leapmotor International commercial head for Enlarged Europe Danilo Annese was asked how a new brand could convince Australian buyers it would still be operating in several years.

"I think [there] will not be many. But I don't want to give numbers," said Mr Annese.

He didn't identify any brand he expected to leave Australia or any other market.

His comments come as Chinese automakers continue to gain share in Australia while a growing number of new brands compete for dealers, marketing attention and buyers.

BYD, GWM, MG and Geely all ranked among Australia's 10 best-selling brands in August 2026, while newer entrants including Leapmotor, Xpeng, Deepal, Zeekr, Denza, GAC and others are continuing to build their local operations.

The success of the largest Chinese brands doesn't guarantee every entrant will generate enough volume to support a national dealer network, parts operation, warranty liabilities and future model investment.

Mr Annese said trust would depend on three things: established dealer partners, reliable spare-parts support and a stable, understandable model range.

He argued a recognised dealer group could provide credibility before an unfamiliar automotive badge had built its own reputation.

"If you associate a name of a new brand to a known distributor, then the distributor name and presence is stronger than the brand he represents," he said.

Leapmotor has used both Stellantis dealerships and independent retail groups as it has expanded in Australia. It now says its vehicles are available through 24 dealerships, up from nine locations at launch in late 2024.

Mr Annese said parts supply was the second major test.

"Spare parts availability. This is essential," he said.

Leapmotor International has claimed about 90 per cent of required parts are available within 24 hours across its regions, while Mr Annese quoted general European availability of between 98 and 99 per cent.

Leapmotor Australia's head of corporate communications, Tracie Stoltenburg, has told CarExpert the local operation will look to provide the same 90 per cent service benchmark.

Those figures aren't directly comparable, and Leapmotor hasn't explained whether they measure warehouse stock, dispatch within 24 hours or delivery to a dealer. Parts availability also doesn't mean a vehicle will be diagnosed and repaired within a day.

The third issue is product stability.

Mr Annese warned that introducing substantially revised vehicles every few months could confuse customers and damage resale values, particularly in markets where most new cars replace an existing vehicle and many are financed or leased.

He contrasted that with China, where a larger pool of first-time buyers can respond more quickly to the newest product.

Leapmotor International has already decided to skip the latest Chinese B10 update, including its 800V electrical architecture, rather than replace an export model that has only recently entered showrooms.

Mr Annese said hardware changes should be adopted when they correct a genuine limitation, but questioned constant replacement for the sake of having the newest specification.

Leapmotor itself remains a small brand in Australia. It delivered 112 vehicles in August, an increase of 286.2 per cent year-on-year but still a fraction of the volume recorded by the largest Chinese automakers.

Its Stellantis backing, growing dealer network and expanding model range give it advantages many new entrants do not have, but they don't guarantee success.

The Australian market has seen automotive brands arrive and disappear before – the first wave of Chinese brands in the early 2010s saw Chery and Geely arrive and depart, only to return years later. Other Chinese brands such as JMC and ZX Auto have yet to return.

Mr Annese's view is that the survivors will be those able to prove they can support the car after the initial sale, protect existing customers and build a viable retail business rather than simply launch another competitively priced vehicle.

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