China's electric vehicle (EV) market is undergoing another shift, with Leapmotor and Xiaomi exploring new EV brands amid increasing competition and changing consumer demand.

As automakers seek to strengthen their positions in the EV market, both companies are evaluating ways to expand beyond their current product portfolios, target new customer groups, and develop separate brand identities.

Hangzhou-based EV manufacturer Leapmotor has revealed plans to explore a second vehicle brand focused on the premium EV segment. The company is reportedly considering models priced above CNY 300,000 (around US$ 44,000), representing a move above its current range of affordable and mid-market electric vehicles.

Although the brand name and specific details remain undisclosed, company executives have indicated that the first models could arrive between late 2026 and early 2027.

The move indicates Leapmotor's intention to expand beyond budget-focused EVs and increase its presence in the premium electric vehicle segment. Industry analysts state that entering a higher price category could improve profitability, as lower-priced EVs generally operate with tighter margins. Leapmotor currently offers sedans, SUVs, and compact EVs aimed primarily at mass-market consumers.

At the same time, Xiaomi's EV business is also exploring expansion through new branding strategies. Following its entry into China's EV sector, Xiaomi has recorded increased demand for its vehicles and is assessing ways to strengthen its market position amid domestic competition.

China's EV market shows increasing focus on premium brands

China's EV industry has become highly competitive, with manufacturers regularly launching new models and engaging in price competition to attract buyers. Established companies such as BYD and Geely, alongside newer startups, are increasing pressure on automakers to innovate while maintaining profitability. As the market matures, manufacturers are placing greater emphasis on brand positioning, technology, and premium mobility solutions.

For Leapmotor, introducing a premium sub-brand could allow the company to compete with luxury EV manufacturers while maintaining its existing position in the mass-market segment. Similar strategies are used across the automotive industry, where manufacturers establish separate premium brands to target higher-income customers. Reports also suggest Leapmotor may create an independent sales network for the proposed brand to separate it from its current operations.

Xiaomi's interest in expanding its EV branding strategy also reflects how technology companies are adapting to changes in the automotive sector. As EVs become increasingly connected and technology-focused, companies with established digital ecosystems may seek broader product portfolios to expand market reach.

With competition expected to intensify further in China's EV market over the coming years, manufacturers are likely to focus not only on vehicle development but also on brand differentiation across multiple consumer segments. For Leapmotor and Xiaomi, expanding EV brand strategies and adapting to changing mobility trends are expected to influence their long-term business development.