Stellantis Explores Leapmotor's Introduction to the Indian EV Market

Key Highlights:

• Stellantis acquired a 20% stake in Leapmotor in October 2023.
• Actively explores the feasibility of introducing Leapmotor in the Indian EV market.
• Considers assembling Leapmotor vehicles at the Pune factory for local market entry.
• Joint venture eyes global exports of Leapmotor EVs from the second half of 2024.

Amidst the surge of global electric vehicle brands entering India, Stellantis, the world's fourth-largest automotive company, is considering bringing Chinese EV brand Leapmotor to the Indian market. The move follows Stellantis’s acquisition of a 20% strategic stake in Leapmotor for 1.5 billion euros in October 2023.

Leapmotor International Joint Venture

The strategic partnership also birthed Leapmotor International, a 51:49 joint venture led by Stellantis. This venture holds exclusive rights for Leapmotor's export, sale, and manufacturing outside Greater China. The foray into India aligns with Leapmotor's internationalization strategy, spearheaded by Stellantis.

Feasibility Study for the Indian Market

Stellantis is currently conducting a feasibility study on introducing Leapmotor to India. If successful, Leapmotor would become Stellantis' fourth brand in India, joining Citroen, Jeep, and Maserati. The product portfolio for the Indian market is expected to span the sub-Rs 10 lakh to Rs 40 lakh price range, featuring mini hatchback EVs to compete with popular models like Tata Tiago, Nexon EV, and Maruti Suzuki's upcoming eVX.

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Local Assembly and Market Entry

Stellantis is contemplating importing Leapmotor vehicles as CKD (Completely Knocked Down) units and assembling them initially at its factory in Ranjangoan, near Pune. The company aims to introduce the brand to the Indian market in less than a year, pending the project's commercial feasibility.

Expanding Dealer Network

The introduction of Leapmotor is anticipated to enhance Stellantis' existing dealer network in India, boosting showroom footfalls. Stellantis aims to capitalize on Leapmotor's cost-efficient EV ecosystem in China to meet its 'Dare Forward 2030' electrification targets.

Stellantis-Leapmotor Partnership

Stellantis sees Leapmotor's EV offerings as complementary to its current technology and iconic brand portfolio. The joint venture expects to commence exports in the second half of 2024, utilizing Stellantis' global commercial presence to accelerate Leapmotor sales outside China.

Stellantis CEO's Perspective

Stellantis CEO Carlos Tavares expressed confidence in Leapmotor's potential, stating, "We feel it’s the perfect time to take a leading role in supporting the global expansion plans of Leapmotor." Tavares highlighted Leapmotor's efficiency and agility, foreseeing the company dominating mainstream EV segments in China.

Potential Manufacturing Base in India

Sources suggest that India could become a potential manufacturing base for low-cost EVs, aligning with Stellantis’s agreement with Leapmotor. Discussions about building low-cost EVs in Italy are also underway.

Keen Interest in the Indian Market

Leapmotor confirmed its keen interest in the Indian market during the Munich Mobility Show in 2023. While exploring partnerships with local players, Leapmotor had not finalized its India plans. The move comes amid increasing interest from global EV players like Fisker, Tesla, and VinFast in the burgeoning Indian EV market.

CarBike360 Says

Stellantis is actively exploring the introduction of Leapmotor to the Indian electric vehicle market, marking a strategic move to expand its portfolio. The feasibility study, potential local assembly, and collaboration aim to tap into India's growing EV market and strengthen Stellantis' presence in the country's automotive landscape.