India’s JSW initiates talks with Chinese carmaker Leapmotor for EV tech | Business Upturn

India’s JSW initiates talks with Chinese carmaker Leapmotor for EV tech

One of the sources stated that JSW is likely to use a single platform on which it can produce at least three mid-sized sport-utility vehicles (SUVs), and that Leapmotor will also engineer the vehicles for the Indian firm.

Steel-to-energy in India According to those with knowledge of the conversations, JSW Group is in preliminary discussions with Chinese carmaker Leapmotor to license technology to construct electric vehicles in India.

According to the technology license agreement, JSW would employ Leapmotor’s platform—the foundation upon which a car is built—to produce EVs in India under its own brand name, according to the sources. This would be the company’s second attempt to get into the expanding market.

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One of the sources stated that JSW is likely to use a single platform on which it can produce at least three mid-sized sport-utility vehicles (SUVs), and that Leapmotor will also engineer the vehicles for the Indian firm.

When production might start was not specified by the sources.

For its EV drive in the nation, the business has also been in talks to purchase a stake in MG Motor India, owned by China’s SAIC Motor Corp, but those talks have halted, the source noted.

Tata Motors dominates the small EV market in India, which accounted for less than 2% of all vehicles sold during the previous fiscal year. The government plans to increase EV sales to 30% of all sales by 2030, but growth is happening quickly.

One of the sources stated, “JSW wants to sell cars under its own brand for which they need the technology more than an investment or joint venture in an existing carmaker,” adding that it has also been in talks with a few other Chinese automakers.

As the discussions are still ongoing and no decision has been made in full, the sources declined to be named.

Leapmotor chose not to respond.

While Sajjan Jindal, the billionaire chairman of JSW, declined to comment, he has made public statements about his goal to create electric vehicles and its conversations with MG Motor. In 2016, the business launched its initial foray into electric vehicles.

This week, the Indian media claimed that JSW is in technological negotiations with Chinese firms and is also in talks to buy Ford Motor Co.’s southern India plant, where manufacturing was halted last year after the company left the market.

The specifics of discussions with Leapmotor have not before been publicized.

Tesla is also interested in this market and is in discussions with the Indian government about establishing a factory there to produce inexpensive EVs. The government is also developing a new plan to entice EV manufacturers by lowering import taxes in exchange for their investment in domestic manufacturing.

Leapmotor, founded in 2015, sells four mass market electric cars and holds less than 2% of the fragmented EV industry in China. It revealed a new EV platform in August and intends to license it to additional automakers.

Leapmotor would have the chance to profit from the Indian market through a contract with JSW at a time when Chinese businesses are finding it difficult to establish manufacturing operations there as a result of New Delhi’s stricter regulations governing foreign investment from nearby nations, according to one of the people.

As a result, MG Motor India was compelled to seek out regional investors like JSW in order to obtain stock.

According to media reports, Leapmotor has also been in collaboration discussions with other significant automakers, such as Stellantis and Volkswagen.