Leapmotor has signed a cooperation agreement with Myanmar's NPK Motor to assemble vehicles on a KD (Knocked Down) model in the Southeast Asian country.
Chinese new energy vehicle (NEV) maker Leapmotor (HKG: 9863), which is backed by Stellantis NV (NYSE: STLA), will assemble vehicles in Myanmar to expand its international footprint into the Southeast Asian market.
Leapmotor signed a strategic cooperation agreement with Myanmar's NPK Motor on November 25 to assemble vehicles in the Southeast Asian country on a KD (Knocked Down) model, according to a press release yesterday.
KD is a trade-specific term that refers to a production method in which the producing country imports parts in the form of bulk kits and assembles them locally.
Depending on how many parts the producing country receives, KD includes CKD (Complete Knocked Down), SKD (Semi Knocked Down), and DKD (Direct Knocked Down).
Leapmotor's press release doesn't mention the exact model it uses to assemble vehicles in Myanmar, though its press images suggest SKD, in which the main components of the vehicle, such as the engine and chassis, are already pre-assembled into assemblies, and the importing country only needs to complete the remainder of the assembly work.
NPK Motor is Myanmar's top NEV-selling car dealer, with operations in manufacturing, trading, and car sales, Leapmotor's press release noted.
The company will provide professional support for the KD project and assist in the smooth progress of the project in Myanmar, Leapmotor said.
This will help enhance the local cost advantage of Leapmotor's products and bring advanced NEV products to Myanmar, the Chinese NEV maker said.
Founded in 2015, Leapmotor is one of the earliest new car-making forces in China.
The company currently sells the T03, C01, C10, C11, and C16 in China, with all models except the T03 offering both battery electric vehicle (BEV) and extended-range electric vehicle (EREV) variants.
In the January-October period, the company's deliveries stood at 211,038 vehicles, up 97.18 percent year-on-year, according to data compiled by CnEVPost.
Leapmotor is targeting sales of 250,000 vehicles this year and 500,000 for the full year 2025, its management previously said.
The company is expanding overseas in partnership with Stellantis, Europe's second-largest automaker by sales, and has begun selling vehicles in more than 10 European countries.
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