(Yicai) Nov. 28 -- Chinese electric vehicle startup Leapmotor and Myanmaren car dealership NPK Motor have signed an agreement to assemble autos based on a knocked-down model in the Southeast Asian country.

Leapmotor and NPK Motor will set up an assembly line in Myanmar to enhance the Chinese carmaker's local product cost advantages and bring advanced EV models to the country, the Hangzhou-based firm announced on WeChat yesterday, citing a deal the pair inked on Nov. 25.

The knocked-down model refers to a production method in which the parts of a product are imported in bulk to the destination where it is assembled, a common strategy among car manufacturers.

Stellantis-backed Leapmotor is glad to establish a long-term and comprehensive in-depth partnership with NPK Motor, noted Senior Vice President and Chief Operating Officer Xu Jun. The company will give full play to its services, tech, resources, and brand advantages to provide diversified and all-around professional support to the project and help its smooth implementation.

The Myanmar government has been actively promoting EVs in recent years, sustainedly enhancing the local new energy industry's competitiveness through various policies and measures, including favorable tariffs and refining infrastructure construction.

NPK Motorm, the dealership with the most new energy vehicle sales in Myanmar, has made big efforts to promote its EV and charging network businesses.

In May, Leapmotor enhanced its overseas expansion by establishing Leapmotor International, a 51:49 Stellantis-led joint venture, to focus on market expansion, research and development, and sales abroad. Its C10 and T03 models began selling in nine European countries in September.

Shares of Leapmotor [HKG: 9863] fell 1.4 percent to HKD28.45 (USD3.66) each as of 1.50 p.m. in Hong Kong today, after dropping by as much as 2.1 percent in the morning trading session.

Editor: Martin Kadiev