After MG and BYD, Chinese electric vehicle (EV) maker Leapmotor is gearing up to enter India with its budget vehicles, and would it be a disruptor in the Indian EV space?
The Chinese company, which has previously been holding parleys with Sajjan Jindal’s JSW, will be unveiling investments and India entry plans in a tie-up with the Stellantis group, which recently picked a stake in its global operations.
 |
| Leapmotor makes high-quality budget EVs. |
Leapmotor, Stellantis announcement
“Leapmotor and Stellantis are set to make an announcement about their India plans. And, this may take place in the next few weeks,” an executive close to the development said.
He added, “If the venture is given the green light by the Indian government, it may unleash fresh competition in the electric vehicle space in the country as Leapmotor plans to bring its budget vehicles to India.”
About Stellantis group
Stellantis group is one of the top automakers in the world and has stake in a litany of brands, including Citroen, Peugeot, Jeep, Chrysler, Maserati and Fiat.
But in India, the group is present through Citroen and Jeep.
It plans to grow further in the country, especially in the EV space, by widening its retail base, launching new models and by making fresh investments.
Chinese EV makers get money boost
The global pact between Leapmotor and Stellantis is just a recent one. And, this alliance has given the Chinese company the power to contemplate fresh investments for the Indian market.
Similarly, MG, which is owned by Chinese firm SAIC, has seen JSW buy significant stake, with a deal to scale up JSW stake to 51 per cent over the next few years.
This, perhaps, has also given MG the confidence to scale up its India plans.
Stellantis-Leapmotor pact
Stellantis, had in October last year, announced that it will invest $1.6 billion to acquire 20 per cent stake in Leap.
And, this will help Stellantis emerge as a significant shareholder of the Chinese EV maker.
The deal has also paved the way for the formation of Leapmotor International, where 51 per cent stake will be owned by Leapmotor and 49 per cent by Stellantis.
This pact will give Stellantis the right to export, sell as well as manufacture Leapmotor products outside China.
Perhaps, the duo would make their India debut via the new entity Leapmotor International.
Leapmotor’s product line up
Leapmotor’s product line up includes a range of electric cars and two-wheelers that would be suitable for the Indian consumer.
Its focus on innovation, performance and affordability will appeal to the wide Indian audience, just like in the Chinese EV market.
Leapmotor India entry to spur competition
The entry of Leapmotor into India is set to intensify competition in the EV segment, challenging existing players and possibly reshaping the market dynamics (to a certain extent though).
E-Vroooom’s views
Leapmotor has a strong reputation of manufacturing high-quality electric vehicles at competitive prices and this may make it a disruptor in the Indian EV space.
No comments:
Post a Comment