(Yicai) Aug. 13 -- Leapmotor Technology has survived "the most terrifying phase" after its global monthly sales topped 100,000 autos for the first time in July, ranking the Chinese startup among the top three new energy vehicle makers in China for the third month in a row, according to its founder.

Leapmotor is in a "stage where I feel a bit happy," Zhu Jiangming said at a press conference for the launch of the carmaker's new model, the A05, on Aug. 11. The Hangzhou-based company has passed through the toughest phase and is expected to achieve even higher goals, he noted.

During the launch event for Leapmotor's D19 model four months ago, Zhu issued a survival warning, noting that "the market has limited capacity, which is not large enough for all 17 Chinese carmakers to survive. The prerequisites for survival are to avoid losses and achieve scale."

In the following months, Leapmotor's sales rose thanks to the launch of several new models. In addition, it managed to enter into a direct competition with major Chinese carmakers after selling over 100,000 units last month.

Behind Leapmotor exceeding the milestone sales figure lie three key factors: vertical integration, self-research and production, and cost-based pricing, according to analysts.

However, Zhu said that these assumptions fall far short of the core. Once sales reach a certain level, it is necessary to use systematic and platform-based approaches to share costs, he stressed.

Leapmotor will not "boost its production capacity only to leave it idle," but will keep its plants operating at full capacity based on its established plans, said Senior Vice President Cao Li. Thanks to platform-based and flexible production, the company's plants can seamlessly connect and share production lines, he pointed out.

Despite challenges posed by declining industry sales and rising raw material costs, Leapmotor remains committed to achieving its annual sales target, Zhu stressed.

Leapmotor has set its sales target at 1 million units for this year, including selling 100,000 units to 150,000 units overseas and achieving a net profit of CNY5 billion (USD741.2 million). It sold 457,800 units in the seven months ended July 31, with 113,000 units overseas.

Stellantis owns 19 percent of Leapmotor. The two parties jointly established Leapmotor International, in which the European auto giant has a 51 percent stake, with the joint venture managing Leapmotor's sales outside of the Chinese mainland.

Editors: Tang Shihua, Martin Kadiev