Following investments from Stellantis in 2023, Chinese EV manufacturer Leapmotor is reportedly preparing to enter the Indian market. However, the company's plans could encounter obstacles due to India's cautious stance on investments from China.
The Times of India quoted sources saying that Leapmotor held talks with India-based JSW Group and is posed to unveil its investment plan and strategy for entering India. Sources told the news outlet that Leapmotor will partner with Stellantis, which has brands like Citroen, Jeep, Chrysler, Peugeot, Fiat, and Maserati, for the plan.
On October 26, 2023, Stellantis invested US$1.6 billion in Leapmotor, acquiring a 20% stake and becoming a strategic investor of the company. According to Leapmotor's annual report, the company will leverage its proprietary technologies and manufacturing in critical EV components, including batteries, motors, controlling units, smart cockpits, and ADAS, in the Chinese market and offer New Energy Vehicle (NEVs) with cost advantage based on the capabilities.
Meanwhile, in markets outside of China, Leapmotor said it would collaborate with Stellantis in a light-asset strategy for efficient global expansion, adding that by leveraging Stellantis' extensive channel network and after-sales service system worldwide, Leapmotor aims to accelerate and expand the sales of its high-tech and highly-cost effective products globally.
Leapmotor shipped 144,155 NEVs in 2023, up 29.7% year-on-year. Since launching the first NEV in 2019, the company has achieved a CAGR of 243.4% in NEV shipments.
However, the India expansion strategy of Stellantis-Leapmotor remains uncertain as it awaits approval from the Indian government. Meanwhile, BYD encounters obstacles in both investment and car sales in India.
