Stellantis, the fourth largest automotive conglomerate globally, is considering introducing Leapmotor, a Chinese EV brand, to the Indian market. This move comes after Stellantis acquired a 20 percent strategic stake in Leapmotor in October 2023 for Euro 1.5 billion (about Rs 13,500 crore).
Leapmotor's India Entry Strategy
The entry into India is part of Leapmotor’s internationalization strategy, led by Stellantis. The company is conducting a feasibility study to introduce Leapmotor in India which could become Stellantis' fourth brand in the country after Citroen, Jeep, and Maserati. Stellantis is exploring a portfolio of vehicles from Leapmotor for the Indian market, ranging from sub-Rs 10 lakh to Rs 40 lakh price points, targeting competitors like the Tata Tiago and Nexon EVs, as well as Maruti Suzuki’s upcoming eVX.
Manufacturing and Assembly Plans
The company is considering importing Leapmotor vehicles as CKD (Completely Knocked Down) units and assembling them at its factory in Ranjangoan, Pune, before localizing them if the project proves commercially feasible. If all goes well, the plan is to introduce the brand in the Indian market in less than a year's time.
Potential Impact on Stellantis India
The introduction of Leapmotor is likely to happen from the existing dealer network of Stellantis India. The addition of another brand will increase showroom footfalls which dealerships desperately need. Stellantis intends to leverage Leapmotor’s cost-efficient EV ecosystem in China to help meet its core ‘Dare Forward 2030’ electrification targets.
Global Expansion Plans
The joint venture between Stellantis and Leapmotor aims to boost Leapmotor sales in China, the biggest market in the world, while leveraging Stellantis’ global commercial presence to accelerate Leapmotor sales outside China, starting with Europe. Stellantis will have two seats on Leapmotor’s Board and will appoint the CEO of the Leapmotor International joint venture.
With its planned entry into the Indian market and its strategic investment in Leapmotor, Stellantis is taking a big step towards broadening its global reach and providing more reasonably priced mobility solutions to clients across the globe. The collaboration is anticipated to close a gap in Stellantis' business strategy and gain from Leapmotor's strength in the Chinese and international markets. Leapmotor's arrival may infuse the EV market in India with new competition and inventive ideas as it grows.