A groundbreaking move for the Indian electric vehicle (EV) market. Stellantis has announced its plans to introduce Leapmotor EVs from China by the end of 2024. This strategic initiative forms part of a joint venture aimed at expanding Leapmotor’s global footprint and providing innovative EV solutions to Indian consumers.
Joint Venture and Global Expansion
Stellantis has formalized a joint venture with Leapmotor, a leading Chinese EV manufacturer, to drive this global expansion. Named Leapmotor International, the joint venture grants Stellantis exclusive rights to export, sell, and manufacture Leapmotor vehicles outside China. Stellantis CEO Carlos Tavares highlighted the importance of this partnership. By emphasizing its potential to bring advanced EV technology to new markets worldwide.
Expected Models for India
Industry experts anticipate the launch of the Leapmotor T03 electric hatchback and the C10 electric SUV for the Indian market. But Stellantis has yet to confirm the specific models. The T03, a compact hatchback measuring just over 3.6 meters, competes with the Tata Tiago EV and offers a range of up to 265 kilometers (WLTP). The C10 SUV, comparable in size to the MG Hector. It will be available with both all-electric and range-extender powertrains, providing options for a wide range of EV buyers.
Manufacturing and Local Assembly
Stellantis is still evaluating whether to assemble Leapmotor EVs locally in India or import them. Tavares suggested that high import duties might lead the company to use its existing local production facilities if it proves to be cost-effective. “Each time we face severe customs duties, it presents a good opportunity to use Stellantis manufacturing within the region”. He explained, indicating a potential preference for local assembly to reduce costs.
Multi-Brand Dealership Approach
Stellantis is considering a multi-brand approach for selling Leapmotor EVs in India. This strategy may involve leveraging existing dealers to offer Leapmotor alongside other Stellantis brands. However, specific details about the dealership network and retail strategies are still under discussion. “We have to think of India as we do for any other market. Tavares mentioned that the decision to bring in new dealers or create new dealerships is yet to be decided.
Long-Term Plans and Market Expansion
The joint venture aims to launch one new model annually for the next three years, introducing a mix of battery electric vehicles (BEVs) and range-extender models. These launches will include new B-segment hatchbacks and SUVs, as well as C-segment hatchbacks and SUVs, ensuring a diverse lineup that caters to various market segments.
Global Reach and Market Presence
In addition to India, Stellantis plans to establish 200 sales points across Europe by September 2024. These points will be located in countries such as Belgium, France, Italy, Germany, Greece, Netherlands, Romania, Spain, and Portugal. Stellantis plans to introduce Leapmotor EVs in South America, the Middle East, Africa, and the Asia-Pacific markets, including Australia and New Zealand.
Branding and Market Strategy
While there is speculation about rebranding Leapmotor EVs for international markets, Tavares clarified that the primary mission of the joint venture is to sell Leapmotor models under their existing brand in key global markets. This approach aims to leverage Leapmotor’s established reputation and technological expertise in the EV sector.
Investment and Strategic Stake
In October 2023, Stellantis acquired a 20% equity stake in Leapmotor, investing €1.5 billion (approximately Rs 13,500 crore). This strategic investment grants Stellantis significant influence within Leapmotor’s board and positions the company to drive Leapmotor’s international expansion effectively. With two seats on Leapmotor’s Board of Directors and the authority to appoint the CEO for the joint venture, Stellantis is well-placed to steer the global growth of Leapmotor EVs.
Conclusion
The introduction of Leapmotor EVs to the Indian market by Stellantis marks a significant development in the global EV landscape. With plans to debut the T03 hatchback and C10 SUV, Stellantis aims to offer Indian consumers innovative, eco-friendly vehicles that cater to various needs and preferences. As the joint venture progresses, it will be interesting to see how Stellantis and Leapmotor navigate the challenges and opportunities in the rapidly evolving EV market.
By embracing this strategic partnership, Stellantis and Leapmotor are poised to make a substantial impact on the Indian automotive scene, driving forward the adoption of electric vehicles and setting new standards in the industry. Follow for more Kia EV6 : Enhanced Features and New Battery Pack
Source : https://www.carandbike.com/
