The recent collaboration between Stellantis and Leapmotor on a global scale may be the catalyst empowering the Chinese company to venture into the Indian market despite stringent regulations on investments from nations sharing a land border with India.
Leapmotor, the Chinese electric vehicle (EV) manufacturer, is set to enter the Indian market, following in the footsteps of MG and BYD. In collaboration with Stellantis, which recently acquired a stake in Leapmotor’s global operations, the company is set to announce investments and plans for its India entry. The partnership aims to introduce budget-friendly electric cars developed by Leapmotor into India, thereby intensifying competition in the green car segment. Stellantis, a major player in the automotive industry, operates several brands globally, including Citroen, Jeep, Chrysler, Peugeot, Fiat, and Maserati. With its presence in India through Jeep and Citroen, Stellantis is gearing up for expansion, brand introductions, retail expansion, and new investments.Â
Despite strict regulations on investments from countries sharing a land border with India, the recent global partnership between Stellantis and Leapmotor has emboldened the Chinese company to venture into the Indian market. Notably, other Chinese automakers like BYD have faced challenges obtaining government approvals for their investment plans in India. In contrast, MG Motor, owned by China’s SAIC group, eventually partnered with Indian conglomerate JSW after facing similar hurdles.
Last year, Stellantis announced a substantial investment of USD 1.6 billion in Leapmotor, acquiring approximately 20% of the Chinese budget EV company. The deal also established Leapmotor International, a joint venture led by Stellantis (51%) with exclusive rights for exporting, selling, and manufacturing Leapmotor products outside Greater China. The India entry strategy is expected to be spearheaded by this new export-oriented entity. When asked about Leapmotor’s potential entry into India, Thierry Koskas, Citroen brand CEO and chief sales & marketing officer for Stellantis, declined to comment1.
This development marks a significant step in the Indian EV landscape, and Leapmotor’s entry could further diversify the market, offering more affordable mobility solutions to consumers2. Stellantis’ strategic investment in Leapmotor underscores the growing importance of electric mobility and global partnerships in shaping the automotive industry’s future. As the world transitions toward sustainable transportation, collaborations like this one play a crucial role in driving innovation and expanding EV adoption worldwide.
