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An affordable price tag can often script success for an electric car but success is often subjective. So while the T03 four-door compact electric vehicle (EV) may carry a very exciting starting price tag of 79,500 yuan (approximately $11,200 or ₹9.13 lakh), its impressive sales numbers aren't exactly bringing in the big bucks for local Chinese automaker called Zhejiang Leapmotor Technologies Ltd.
Leapmotor may be a startup but the success of T03 has helped it take a place of prominence among local Chinese EV manufacturers. As per a Bloomberg report, the company ranked third in terms of deliveries and among local Chinese EV startups - behind Hozon New Energy Automobile Co. and Li Auto Inc - in September when it delivered a little over 11,000 units. But while this 200 per cent jump in deliveries from figures in September of last year ought to be a strong statement, the profit margins aren't exactly cheerful.
Gross margin for Leapmotor is well and truly in the negative and efforts to find a solid foothold in the more premium EV category has not yielded desired results. The company also offers C11 SUV and recently drove out its C01 sedan but while more premium EVs are finding favours in the Chinese market, these models aren't exactly following the path paved by T03.
T03 is a mass-market product aimed at the casual EV buyer in the Chinese auto sector. It has a lot going for it - from its compact proportions to decently-packed cabin. But its range of around 400 kms may be its most compelling proposition. The need of the hour though is for Leapmotor to bolster production which isn't exactly at ideal levels at present.