Leapmotor is gearing up to launch a second-generation version of its compact T03 electric city car in Europe, positioning it to compete with upcoming models like the Renault Twingo and Volkswagen ID.1. The move comes as demand for affordable, small EVs rises, but competition intensifies.
Filling a Niche in a Shrinking Segment
The current T03, introduced to Europe in 2024, stands out as one of the most affordable and smallest electric vehicles on the market – priced under £16,000 and measuring just 3.6 meters long. Its main rival is the Dacia Spring, with few other direct competitors.
While the T03 has boosted Leapmotor’s visibility, its sales (over 2,000 in the UK) lag behind the C10 SUV (5,000 units). The company expects its upcoming B10 crossover, A05 hatchback, and B03X supermini to outperform the T03 further.
However, a key challenge is that major automakers have largely abandoned the A-segment due to profitability concerns. This creates an opportunity for Leapmotor to fill the gap.
European Demand and Strategic Rationale
Leapmotor CEO Tianshu Xin emphasizes the T03’s relevance for European drivers:
“The T03 is a perfect car for European applications… the road conditions and the customer preferences. There’s a huge demand now.”
Xin notes that many customers buy the T03 as a secondary vehicle for daily commutes, school runs, and grocery shopping. Leapmotor is capitalizing on this underserved need as more traditional manufacturers shift focus to larger, more profitable vehicles.
Next-Generation T03: A European Overhaul
Leapmotor is already developing the next-generation T03, first launched in China in 2019. The update will include redesigns of the exterior, interior, and software to better align with European consumer tastes.
The company’s strategy is clear: to offer a compelling, affordable option in a market where few others are willing to compete. The upcoming wave of new electric city cars from Renault, Volkswagen, and Dacia will increase competition, but Leapmotor believes its value proposition will remain strong.
The T03’s success hinges on its ability to deliver a practical, low-cost solution for European drivers. The company is betting that the demand for small, electric city cars will outweigh the challenges of profitability in this segment.
