Global EV Major Stellantis Exploring Tie-up With Leapmotor To Produce Affordable EVs In India

New Delhi, May 15 (KNN) Stellantis, the world's third-largest automaker, is exploring the possibility of locally manufacturing affordable electric vehicles (EVs) in India through its Chinese joint venture partner, Leapmotor.

Carlos Tavares, Chief Executive Officer of Stellantis, revealed this in a recent interview with ET, stating that the group is evaluating the opportunity presented by India's new EV policy.

Announced on March 15th, the Indian government's EV policy aims to attract investments in domestic production of high-end electric cars. It offers a 15 per cent import duty concession for a period of five years on electric vehicles with a minimum cost, insurance, and freight (CIF) value of USD 35,000 (approx. Rs 29.2 lakh), provided the automaker commits to investing a minimum of USD 500 million in local manufacturing facilities.

While Leapmotor's current focus is on introducing affordable EVs priced below the policy's specified cap, Tavares stated that Stellantis' existing facility in Thiruvallur, Tamil Nadu, with an annual production capacity of 90,000 units, could potentially support the local manufacturing of Leapmotor vehicles.

“If we are to bring Leapmotor to India, it would have to be through local manufacturing, as it is for all the other brands we have,” he remarked, citing the high import tariffs on completely built-up units (CBUs) in India.

Stellantis, which owns brands such as Chrysler, Citroën, Fiat, and Jeep, already manufactures EVs under the Citroën badge in Thiruvallur and has reported successful business-to-business (B2B) sales of the eC3 electric car in India.

In addition to domestic sales, Tavares highlighted Stellantis' ambition to leverage India as an export hub, particularly for Southeast Asian markets, where the company already exports the C3 and eC3 models from its Indian facility.

The potential entry of Leapmotor into the Indian market is part of Stellantis' broader global expansion plans for the joint venture. Last October, Stellantis acquired a 21 per cent stake in Leapmotor for 1.5 billion euros, paving the way for the formation of Leapmotor International, a joint venture in which Stellantis holds a 51 per cent controlling stake.

Leapmotor International aims to introduce a portfolio of six EV models to international markets by 2027, with the initial focus on nine European countries starting in September 2023. Subsequently, the joint venture plans to enter South America, the Middle East, Africa, India, and the Asia-Pacific regions.

(KNN Bureau)