By Nqobile Dludla

JOHANNESBURG (Reuters) -Stellantis plans to sell Chinese-branded electric vehicles developed by its partner Leapmotor in South Africa starting with the C10 from September, the company said on Tuesday.

The C10 is an electric SUV with a petrol engine used purely to charge the battery. More Leapmotor models are expected to be launched next year, including fully electric models, Mike Whitfield, managing director of Stellantis South Africa and Sub-Saharan Africa, said in a statement.

Leapmotor created waves with its recent rollout of the all-electric B10 SUV equipped with smart-driving features and lidar sensing technology for less than $18,000.

In 2023, Stellantis bought a 21% stake in Leapmotor for $1.6 billion. The two automakers also formed the joint venture Leapmotor International, in which Stellantis holds a 51% stake.

Leapmotor will help the world's fourth-largest automaker widen its range of affordable EVs, as it presses ahead with electrification at a time when other Chinese automakers including BYD and Chery Auto are aggressively expanding into Africa.

"South Africa is a critical market for Stellantis, and we are fully committed to unlocking its potential through product, innovation and meaningful partnerships," Whitfield said.

Stellantis, which entered the South African market four years ago, is building a new plant in the country, with a maximum capacity of 100,000 vehicles by 2030. It plans to become the No.1 player in the Middle East and Africa region with one million vehicles sold by 2030, with 35% expected to be electric.

In 2024, it sold 500,000 cars in the Middle East and Africa.

With over 60% of the South African market concentrated below the 400,000 rand ($22,755) price point, Stellantis' Citroën C3 range is gaining strong traction, with the upcoming C3 Basalt set to complete a competitive lineup in the accessible B-hatch and SUV segments early next year, Whitfield said.

Stellantis will also launch the Citroën C3 Hola panel van, its entry into the growing commercial vehicle sector aimed at small business owners.

($1 = 17.5780 rand)