Stellantis-Led Leapmotor International to Bring Its EVs To India

Stellantis and Leapmotor, in a significant move, formalised a joint venture, Leapmotor International, with the former holding 51 per cent stake. This new JV aims to introduce new EVs with Leapmotor handling the exports, sales, and manufacturing outside China including Europe, by September 2024, and India & Asia Pacific, Middle East & Africa and South America starting in the fourth quarter. For now, the JV will introduce its already existing models- T-03 hatchback and C10 SUV to Europe, with region-specific models slated for 2025 with a key focus on C-segment SUV and hatchback. India on the other hand, will receive B-segment SUVs (Compact SUVs) and hatchbacks (to rival the Hyundai i10/i20, Tata Altroz and even Maruti Suzuki Swift).

While enhancing Leapmotor’s presence in China, the partnership also seeks to leverage Stellantis’ global reach to boost sales in other regions. To give some perspective, the announcement comes after Stellantis invested €1.5 billion back in October 2023, to acquire approximately 21 per cent equity in Leapmotor, laying the groundwork for Leapmotor International.

Commenting on a question from Acko Drive, CEO Carlos Tavares, Stellantis said, “India will get the Leapmotor brand, if there are synergies beyond that then the platforms or tech could be used for existing cars.” This move could establish Leapmotor International as the third brand under Stellantis in India, alongside Jeep and Citroën. The company may establish its network channel in India post-2025, following product launches in Australia, New Zealand, and the Asia Pacific.

Tavares emphasised the creation of ‘bubbles’ to navigate customs duties and any other regulations, suggesting utilisation of Stellantis factories if direct exports are not feasible. This strategy may involve using Citroën’s Chennai plant or Jeep’s Ranjangaon plant (the former is more likely as the Ranjangaon facility is a JV with Tata Motors), to manufacture LeapMotor products in India. This will allow for competitive positioning and affordability for the Indian market. In this regard, Tavares said, "We are creating bubbles. Either we can export directly, but if we cannot export directly from China, we will use Stellantis factories within each bubble. We can accommodate different customs duties scenarios by using or not using these scenarios.”

Despite the established manufacturing facility in India, Leapmotor International could capitalise on it by producing its vehicles locally for export to other Right-Hand-Drive (RHD) markets across Asia Pacific, Africa, and the Australia-New Zealand region. This strategy not only ensures cost-effectiveness but also maintains product uniformity across diverse markets. However, the Indo-China geopolitical tensions pose a significant challenge. Similar to MG Motor India, which faced pressure to localise its operations due to its Chinese backing, Leapmotor International may encounter obstacles. For instance, MG Motor India recently divested around 35 per cent of its stake to JSW Group, illustrating the complexities of navigating geopolitical issues.

LeapMotor’s product plan for the next three years encompasses A to E segments, based on highly scalable platforms with BEV and Range Extender EV powertrains. Stellantis aims to leverage LeapMotor’s cost-efficient EV ecosystem in China to meet Dare Forward 2030 electrification targets, exploring synergies for mutual benefit. Shipments are expected to commence in the second half of 2024.