Chinese EV Maker Leapmotor Plans To Enter India: Report

Leapmotor, an electric vehicle manufacturer, from China, is set to announce its plans to enter the Indian market soon, according to a new report by The Times of India (TOI). Along with its India entry plans, Leapmotor will also announce investment plans with Stellantis Group. 

A source privy to the information told TOI, “Leapmotor and Stellantis are likely to make an announcement about the India plan, and this may happen in the coming weeks. If approved by the government, this will see the launch of budget electric cars developed by Leapmotor into India, intensifying competition in the green cars space.” 

Also Read: Jeep, Citroën India To Hike Prices From April 30, 2024

Currently, Stellantis India has Jeep, Citroën and Maserati brands under its umbrella, while globally it also has Fiat, Chrysler, Dodge, Lancia, Peugeot, Alfa Romeo, Opel and Vauxhall as subsidiaries. In India, Stellantis is planning to expand its presence by introducing new brands, widening retail and service, and making new investments. 

Stellantis acquired a 20 per cent stake in Leapmotor by investing EUR 1.5 billion (roughly 13,476 crore) in October 2023. This deal also leads to the formation of Leapmotor International, a 51-49 per cent joint venture led by Stellantis, giving the conglomerate exclusive rights for the sale, export and manufacturing of Leapmotor EVs outside Greater China. 

While Chinese companies have been facing scrutiny from the Indian government, Leapmotor reportedly remains confident that its deal with Stellantis should help it bypass the stringent scrutiny. These stringent regulations have prevented BYD from expanding properly in India, despite making a bid with a local partner. Similarly, MG Motor India announced a partnership with Sajjan Jindal-led JSW Group.