There is going to be another new entrant in the Indian automobile space in the form of Leapmotor, which is a Chinese electric vehicle manufacturer. The company is tying up with Stellantis to make the Indian entry.
Notably, Stellantis also recently acquired a stake in global operations of Leapmotor, and now the latter is set to unveil its investment and entry plans for India imminently.
Strategic Partnership with Stellantis:
Stellantis, with its for brands like Citroen and Jeep, has already carved a name of its own and is a prominent player in the global automotive industry. Tying up with the same would mean substantial gain for Leapmotor.
Not just globally, but the brands like Jeep and Citroen have already penetrated the market and further strengthens Leapmotor’s confidence in its foray into the Indian market.
While the picture is not always rosy since there are always challenges in navigating regulatory hurdles especially those which concern cross border investments especially when there is a certain geopolitical background. Hence, in this scenario, Leapmotor’s partnership with Stellantis provides a strategic advantage in overcoming such regulatory barriers.
Securing 20% stake in the company, Stellantis invested of $1.6 billion in Leapmotor last year and the same has paved the way for a robust partnership. This collab has led to the formation of Leapmotor International, a joint venture focused on exporting and selling Leapmotor products globally.
Anticipated Impact on the Indian EV Market:
Though there are no official comments by Stellantis on Leapmotor’s India plans but as per the industry sources the anticipation is around the introduction of budget-friendly electric cars which would further raise the bar of competition in the burgeoning green car segment.
The India entry strategy of Leapmotor in the Indian EV market is a great development for both, Stellantis and Leapmotor.
With the forces combined, a new verve and interesting products are expected by the electric cars and all we can do is wait how this announcement shapes up and where it leads to.
