Most Chinese car brands expanding overseas won’t survive, Leapmotor warns

A Leapmotor executive warns that most Chinese automakers expanding overseas will fail. Why spare parts and resale values will kill them.

The rush of Chinese automakers invading global markets feels a bit like an international gold rush, except half the miners forgot to pack food. According to Danilo Annese, commercial head for Enlarged Europe at Leapmotor, the harsh reality is simple: most of these shiny new Chinese car brands expanding globally simply won’t survive over the long haul.

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While heavyweights like BYD, GWM, MG, and Geely are busy snagging top-ten sales spots in Australia, a dizzying parade of newcomers, including Xpeng, Deepal, Zeekr, Denza, and GAC, are all fighting over the same buyers, dealers, and spotlight.

Winning over skeptical buyers requires much more than slapping a ridiculously low price tag on an electric crossover. Annese points out that long-term survival hinges on three surprisingly unglamorous pillars: reputable dealer partnerships, actual spare-parts availability, and not confusing customers with endless, frantic product updates. In mature markets, pairing an unfamiliar badge with an established dealer network grants instant credibility.

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Then comes the logistics nightmare: spare parts. Leapmotor claims a 90 percent parts availability benchmark within 24 hours, a metric local corporate communications head Tracie Stoltenburg aims to match, though whether that means shipped, delivered, or sitting on a warehouse shelf remains slightly vague. Still, without replacement bumpers and sensors ready to go, a tech-heavy EV quickly transforms into a very expensive driveway ornament.

Finally, Chinese brands need to curb their addiction to updating hardware every six months. Treating a two-ton vehicle like a smartphone software patch destroys resale values and leaves recent buyers feeling instantly ripped off. That is precisely why Leapmotor chose to skip China’s latest 800V B10 update for export markets, opting for sanity over spec-sheet flexing.

Even with Stellantis backing and an August sales surge to 112 units in Australia (+286.2% year-on-year), Leapmotor remains a modest player, fully aware that launching shiny metal is the easy part. As Australia learned from the early 2010s disappearances of Chery, Geely, JMC, and ZX Auto, surviving the auto industry’s Hunger Games requires protecting customer trust long after the initial sale.

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