Data from Gasgoo shows that in the second quarter of 2026, Leapmotor, a Chinese new-energy vehicle startup, achieved a historic milestone: its global quarterly sales outperformed two established Japanese automakers, Subaru and Mitsubishi. Driven by rapid expansion in both China and Europe, the decade-old brand has secured its place among the world’s mainstream automakers.

The global auto market faced headwinds in Q2. Toyota retained the top global ranking with 2.71 million vehicles sold, yet its sales fell 4% year-on-year. Volkswagen ranked second at 2.07 million units, marking a 9% year-on-year decline. Amid high oil prices and slowing global vehicle demand, most leading traditional automakers reported sliding sales.

Against this backdrop, Leapmotor delivered remarkable growth. Its Q2 sales hit a record high of 240,000 units, surging 84% year-on-year. By comparison, Subaru sold 230,000 vehicles and Mitsubishi 170,000 in the same period. Leapmotor has overtaken both Japanese brands and is closing in on Mazda’s quarterly volume of 300,000 units. This marks the first time Leapmotor has outsold a major Japanese passenger car manufacturer in a single quarter.

Founded in 2015, Leapmotor pursues in-house R&D of core technologies including batteries, electric drive systems and ADAS software. Its product portfolio focuses on affordable battery electric vehicles and plug-in hybrids.

China rolled back some new-energy vehicle tax incentives earlier this year. While many competitors saw weakened market demand, Leapmotor won favour among young buyers with its cost-effective models. In July, the brand hit another milestone with monthly sales exceeding 100,000 units for the first time.

Leapmotor has set a 2026 sales target of 1 million vehicles. This figure exceeds Subaru’s fiscal 2026 forecast of 940,000 units and Mitsubishi’s target of 857,000 units.

Europe serves as one of the key growth engines for Leapmotor. Mobility Global data indicates overseas sales accounted for 20% of Leapmotor’s total volume in Q2, up sharply from 6% a year earlier. Over 80% of its overseas deliveries came from Europe. Backed by investment from Stellantis, Europe’s fourth-largest automaker, Leapmotor has built an overseas sales network. Stellantis transferred ownership of a plant in Spain to their joint venture, which will produce Leapmotor-branded EVs. Localised manufacturing is expected to further lift its market share.

Leapmotor has gained strong traction across European countries. Statistics from an Italian automotive association show that from January to August this year, Leapmotor’s EV sales in Italy jumped 13 times to 24,450 units. It became the country’s top-selling EV brand, capturing a 27% share of Italy’s electric vehicle market, far ahead of Tesla in second place with a 9% share. Affordable models such as the T03 priced at roughly 15,900 euros (18,300 US dollars) are a major draw. The brand is also expanding its footprint in Germany and France.

Japanese automakers, by contrast, struggled in Europe. Nissan’s European Q2 sales dropped 15% year-on-year, while Mitsubishi’s tumbled around 40%. As high fuel costs and government incentives push consumers to switch from petrol cars to EVs, Japanese brands have failed to roll out sufficiently competitive electric models.

A recent report from the International Energy Agency warns that the rapid global expansion of Chinese automakers poses substantial pressure to Japanese and European manufacturers still heavily reliant on petrol and hybrid vehicles. Should Chinese EV startups like Leapmotor keep outpacing mid-sized Japanese automakers in sales, the gap in cost competitiveness across the global EV sector may widen further.