New Delhi: JSW Group is reportedly in early discussions with Chinese automaker Leapmotor to acquire technology for producing electric vehicles (EVs) in India. The potential technology licensing agreement would allow JSW to employ Leapmotor’s platform to manufacture EVs under its brand name in India. This marks JSW’s second attempt to enter the EV market.
While JSW declined to comment on the ongoing talks, its chairman, Sajjan Jindal, has previously expressed interest in building EVs and has been in discussions with MG Motor India. The Indian government aims to boost EV sales to 30% of total sales by 2030.
Collaboration Details
JSW Group, a prominent Indian conglomerate, is reportedly exploring a collaboration with Chinese automaker Leapmotor to leverage EV technology for manufacturing in India. Sources familiar with the matter indicate that JSW intends to license Leapmotor’s platform to develop electric vehicles under its brand in the Indian market.
Platform Utilization and EV Lineup
Under the potential agreement, JSW plans to employ Leapmotor’s platform to create electric vehicles tailored to the Indian market. The platform’s adaptable nature allows JSW to develop at least three mid-sized sport-utility vehicles (SUVs) on a single framework. Additionally, Leapmotor is expected to engineer these vehicles for JSW.
EV Market Context
While India’s electric vehicle market remains relatively small, there is significant growth potential. Currently, Tata Motors leads EV sales in India, comprising less than 2% of total car sales last fiscal year. However, the Indian government is committed to increasing EV sales to constitute 30% of total sales by 2030, driving interest and investment in the sector.
JSW’s Approach and Chinese Collaboration
JSW’s interest in acquiring EV technology aligns with its intent to introduce its brand of electric vehicles. The company is actively seeking technology collaborations rather than investments or joint ventures with existing automakers. In addition to talks with Leapmotor, JSW has reportedly engaged in discussions with other Chinese automakers.
Leapmotor’s Position and Possible Benefits
Leapmotor, a Chinese electric vehicle manufacturer with less than 2% market share in China, seeks opportunities to expand its reach beyond its home market. Collaborating with JSW would offer Leapmotor access to the rapidly growing Indian EV market. The tightened foreign investment rules in India have made manufacturing challenging for Chinese companies, making collaboration with Indian partners appealing.
As discussions continue between JSW and Leapmotor, the Indian electric vehicle industry witnesses a growing influx of international partnerships, reflecting the industry’s evolving dynamics.