Stellantis to make Leapmotor’s ‘affordable’ EVs in India by year-end
European car maker Stellantis, which makes Jeep and Citroen brands in India, on Tuesday tied up with Chinese electric vehicles (EVs) manufacturer Leapmotor and said it will bring “aordable” EVs to India by the end of this calendar year under a joint venture (JV).
This will be the third Chinese brand to enter India after SAIC’s MG and BYD in the EV space. Both the companies entered into a JV at the global level after receiving all required authorisations, thus completing the formation of Leapmotor International BV — a 51:49 JV led by Stellantis.
The companies also said that the India-bound EVs will be manufactured at one of the Stellantis’ manufacturing facilities — Tamil Nadu (Thiruvallur) or Maharashtra (Pune) — considering the high import tari on fullybuilt cars in the country, Carlos Tavares, Chief Executive O¬cer, Stellantis, told reporters.
“It is quite clear that each time we are facing severe customs duties or taris, it is a good opportunity for us to use the manufacturing footprints of Stellantis ‘inside of the bubble’. So we are very keen on creating that opportunity for Leapmotor International if that makes economic sense,” he said.
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Headquartered in Amsterdam, the JV company is led by CEO, Tianshu Xin, a former Stellantis China executive, who is now laying the groundwork for the introduction of the T03 and C10 models, first in the European markets and expanding to India and Asia Pacific (excluding Greater China), West Asia and Africa, and South America starting in Q42024, the company said.
In October 2023, the two companies announced a Stellantis
investment of €1.5 billion to acquire 21 per cent equity in Leapmotor (ranked in the top 3 Chinese EV startup brands in 2023) and the deal also outlined the formation of Leapmotor International, which would have exclusive rights for the export and sale, as well as manufacturing, of Leapmotor products outside Greater China.
“So there is no limitation, of course, for Leapmotor International to use our (Stellantis) manufacturing footprint inside of India if that was to be the best case.”
India imposes customs duty ranging between 70 per cent and 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value on cars imported as completely built units.