The electric vehicle market is booming in India, and players around the world are lining up for an entry here. In the past, the Indian Government had strict foreign direct investment rules. Also, vehicle import policies in the EV segment attracted very high taxes. This discouraged foreign brands from entering the Indian market as the product cost was not feasible enough especially in a price sensitive market like India.
However, according to new policies, the import duties have been relaxed under certain conditions. These conditions include a minimum an investment of INR 4,150 Crores to locally manufacture the product. In addition to this, the custom duty for vehicles with a CIF (Cost + Insurance + Freight) of USD 35,000 which is approximately INR 29 lakh the government will apply 15% customs duty for 5 years.
This has attracted quite a few EV companies which now includes Leapmotor. A Chinese electric vehicle manufacturer which is likely to make its entry soon in the Indian market. According to a media report, Leapmotor is likely to come to India under the Stellantis conglomerate. Furthermore, the brand is likely to reveal its investment plans in the coming weeks, says reports.
Furthermore, reports reveal that if the government of India approves their proposal, the company could launch budget electric vehicles in the Indian market. With a strategic investment of EUR 1.5 Billion into Leapmotor, Stellantis is said to have acquired 20% of the company. Additionally, a deal with a 51:49 ratio is likely to have been outlined giving Stellantis control over Leapmotor and getting exclusive rights to export and manufacture Leapmotor products outside of China.
Stellantis could bring Leapmotor EVs to the Indian market via the CKD route. The company could assemble the budget EVs at the Ranjangaon production facility and even start local production to bring down the prices furthermore. Leapmotor is likely to arrive in India as soon as 2025.
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