India’s steel-to-energy JSW Group is in early talks with Chinese automaker Leapmotor to license know-how to construct electrical autos in India, in line with individuals acquainted with the discussions.
Under the know-how licensing settlement, JSW would use Leapmotor’s platform — the structural underpinnings of a automotive on which it’s constructed — to fabricate EVs in India beneath its personal model identify, the sources mentioned, within the firm’s second try and enter the rising enterprise.
JSW is probably going to make use of a single platform on which it might construct no less than three mid-sized sport-utility autos (SUVs), one of many sources mentioned, including that Leapmotor will even engineer the automobiles for the Indian firm.
The sources didn’t say when manufacturing would possibly start.
The group has additionally been in talks to purchase a stake in MG Motor India, owned by China’s SAIC Motor, for its EV push within the nation however these discussions have slowed, the particular person added.
India’s EV market is small, with Tata Motors dominating gross sales that made up lower than 2 p.c of all automobiles offered final fiscal yr. But development is fast and the federal government needs to spice up EV gross sales to 30 p.c of the entire by 2030.
“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,” mentioned one of many individuals, including that it had been in talks with a couple of different Chinese automakers as nicely.
All sources declined to be recognized because the talks are nonetheless ongoing and a ultimate resolution has not been made.
Leapmotor declined to remark.
While JSW declined to remark, its billionaire chairman Sajjan Jindal has publicly talked about his intention to construct EVs and its discussions with MG Motor. The firm made its first try and get into EVs in 2016.
Indian media reported this week that JSW is in talks with Chinese corporations for know-how and can be in discussions to accumulate Ford Motor Co’s southern India plant the place it stopped manufacturing final yr after exiting the market.
Details of talks with Leapmotor haven’t been reported beforehand.
Tesla can be eyeing the market and is in talks with the Indian authorities to arrange a manufacturing facility there to construct reasonably priced EVs. The authorities can be engaged on a brand new scheme to draw EV makers by providing them decrease import taxes in return for funding in native manufacturing.
Founded in 2015, Leapmotor has lower than 2 p.c share of China’s fragmented EV market, the place it sells 4 mass market electrical fashions. In August, it unveiled a brand new EV platform which it needs to license to different automakers.
A cope with JSW could be a possibility for Leapmotor to earn revenues from the Indian market at a time when Chinese corporations have struggled to arrange manufacturing within the nation after New Delhi tightened overseas funding guidelines from neighbouring nations, one of many sources mentioned.
This has additionally compelled MG Motor India to seek out native traders like JSW so it might elevate fairness.
Leapmotor additionally has been in partnership talks with different main automakers, together with Stellantis and Volkswagen, in line with media experiences.
© Thomson Reuters 2023
