In the midst of a surge in global electric vehicle brands entering the Indian market, Stellantis, the world’s fourth-largest automotive conglomerate, is exploring the potential introduction of another nameplate from its portfolio of 14 brands into India. Leapmotor, a Chinese EV brand in which Stellantis acquired a 20 percent strategic stake for Euro 1.5 billion (approximately Rs 13,500 crore) in October 2023, is being considered for entry into the Indian market.
As part of the deal, Stellantis and Leapmotor formed Leapmotor International, a joint venture led by Stellantis with a 51:49 partnership ratio, which holds exclusive rights for exporting, selling, and manufacturing Leapmotor products outside Greater China.
The move to enter India aligns with Leapmotor’s internationalization strategy, spearheaded by Stellantis. Stellantis is currently conducting a feasibility study on introducing Leapmotor vehicles in India, potentially making it Stellantis’ fourth brand in the country, joining Citroen, Jeep, and Maserati.
Sources suggest that Stellantis is considering a range of Leapmotor vehicles for the Indian market, with prices ranging from below Rs 10 lakh to Rs 40 lakh. These products would include a mini hatchback EV to compete with models like the Tata Tiago and Nexon EVs, as well as Maruti Suzuki’s upcoming eVX.
The company is exploring the possibility of importing these vehicles as CKD units and initially assembling them at its Ranjangoan factory near Pune before considering localisation, pending commercial feasibility.
If successful, the plan is to launch the brand in India in less than a year. Stellantis India has yet to respond to inquiries regarding this development.
This decision comes at a time when Vietnamese EV specialist VinFast has announced its plans for India, and companies like Fisker and Tesla are considering entry into the market.
The introduction of Leapmotor is expected to leverage Stellantis’ existing dealer network in India, potentially increasing showroom footfalls and enhancing dealer performance.
Billy Hayes, Senior VP of Stellantis India and Asia Pacific, previously mentioned the company’s interest in adding more brands in India. The partnership between Stellantis and Leapmotor aims to boost Leapmotor’s sales in China and accelerate its sales outside China, starting with Europe.
Stellantis intends to utilise Leapmotor’s cost-efficient EV ecosystem in China to meet its ‘Dare Forward 2030’ electrification targets and plans to commence exports through the joint venture in the second half of 2024.
Leapmotor’s EV offerings are seen as complementary to Stellantis’ current technology and brand portfolio, providing more affordable mobility solutions to global customers.
Stellantis will have two seats on Leapmotor’s board and will appoint the CEO of the Leapmotor International joint venture. According to recent reports, Stellantis is also considering manufacturing low-cost EVs in Italy as part of its agreement with Leapmotor, with India potentially serving as another manufacturing base.
Stellantis CEO Carlos Tavares expressed confidence in Leapmotor’s potential, highlighting their shared tech-first, entrepreneurial mindset and the strategic investment’s ability to address gaps in Stellantis’ business model.
Although discussions with Indian entities like JSW and Mahindra regarding technology licensing or acquisition by Leapmotor did not materialise, Leapmotor’s top management confirmed their interest in the Indian market at the Munich Mobility Show in 2023, expressing readiness to partner with local players, although final plans for India have not been concluded yet.
