Stellantis merger with Leapmotor; announces entry in India by end of 2024

Carlos Tavares, the global CEO of Stellantis, has revealed that Leapmotor International, a joint venture led by Stellantis headquartered in Amsterdam along with Chinese EV manufacturer Leapmotor, will debut in the Indian market in Q4 2024. The joint venture aims to distribute and produce EVs beyond China. The expansion into India aligns with the global growth strategy of the partnership. Tavares declared the venture’s progression, stating, “We are transitioning into action. We are currently in the preparatory phase to expand our presence into various markets and commence exporting vehicles from China to other parts of the world. As we’ve mentioned earlier today, planning constitutes 10 percent, while execution constitutes 90 percent. Thus, we are transitioning into the execution phase of our agreement.”

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The CEO of Stellantis emphasizes that teaming up with Leapmotor will facilitate the global availability of the latest EV technology at an affordable cost.

• The joint venture between Stellantis and Leapmotor plans to introduce nine electric vehicles to global markets by 2027.
• Starting September 2024, Leapmotor will expand into nine European markets.
• The joint venture will expedite the availability of affordable EVs in the market.

In the initial phase, starting September 2024, Leapmotor will launch in nine European countries, namely Belgium, France, Italy, Germany, Greece, the Netherlands, Romania, Spain, and Portugal. The brand will be available through 200 dealerships across the region. Stellantis is currently in the process of homologating all models for the European market, with sales commencing thereafter.

Tavares announced that in Q4 of 2024, Leapmotor International will expand into South America, the Middle East, Africa, India, and the Asia Pacific regions. Tavares emphasized, “With the inclusion of the nine European countries and the three additional regions, we anticipate substantial growth in Leapmotor’s model lineup.”

Expanding on this agreement, Tavares highlights four advantages: it expedites the market entry for smart and affordable EVs, integrates cutting-edge technology from Leapmotor, aligns with Stellantis’ Dare Forward plan to reduce emissions by 50 percent by 2030, and employs an asset-light model to execute the strategy.

The joint venture aims to introduce a portfolio of six models by 2027. Tavares emphasized, “Our ultimate objective is zero-emission vehicles. The joint venture will play a pivotal role in making affordable electric vehicles accessible.”

“So, we are keen on creating that opportunity for Leapmotor International if that makes economic sense, as there is no limitation for Leapmotor International to use our manufacturing footprint inside of India if that was to be the best business case,” added Tavares. Synergies beyond using Leapmotor models would be a topic of “separate discussion” if they deliver win-win opportunities for both companies.

When questioned about Stellantis’ plans for assembling these vehicles in India, Tavares noted that the significant customs duties or tariffs present a favorable opportunity for leveraging Stellantis’ local manufacturing capabilities. However, he emphasized the necessity of establishing a viable business case.

“We are interested in creating such an opportunity for Leapmotor International if it proves economically viable,” Tavares continued. “There are no restrictions for Leapmotor International to utilize our manufacturing facilities within India if it aligns with the optimal business strategy.” Additionally, Tavares mentioned that exploring synergies beyond utilizing Leapmotor models would be a subject for “separate discussion” if they present mutually beneficial opportunities for both entities.