Stellantis to make Leapmotor's "affordable" EVs in India by 2024 end 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.
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Stellantis, a European car maker which makes Jeep and Citroen brands in India, has tied up with Chinese EVs manufacturer Leapmotor and said it will bring "affordable" EVs to India by the end of this calendar year under a joint venture (JV).
With this, it will be the third Chinese brand to enter the country after SAIC's MG and BYD in the EV space. Both the companies entered into a JV at 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 tariff on fully built cars in the country.
"It is quite clear that each time we are facing severe customs duties or tariffs, 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," Carlos Tavares, Chief Executive Officer, Stellantis said.
In October 2023, the two companies announced a Stellantis investment of 1.5 billion Euro to acquire around 21 per cent equity in Leapmotor 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 manufacturing footprint inside of India if that was to be the best case," Stellantis manufacturers Citroen brand of vehicles in Chennai and the Jeep brand in Pune.
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.
