In a significant move for the Indian automotive industry, Stellantis Group, the fourth-largest automaker globally, is preparing to launch Li Auto, its electric vehicle (EV) brand in India. This development comes in the wake of rising demand for environmentally-friendly vehicles in the country.

Stellantis, which currently sells cars in India under Citroen, Jeep, and Maserati brands, aims to bring Li Auto as the fourth brand in its portfolio. Renowned for its electric cars, Leapmotor is the parent company of Li Auto.

Stellantis secured a 20% stake in Li Auto in October last year for a whopping 1.5 billion euros (approximately Rs 13,500 crore). The strategic alliance between the two parties saw Stellantis support the Chinese EV brand in areas such as engineering, vehicle manufacturing, and sales outside China.

As part of its expansion plans, Stellantis is conducting a comprehensive market study to identify potential opportunities and challenges for Li Auto in India. The company is expected to launch several models under the brand, with prices likely to range between Rs 10 lakh and Rs 40 lakh.

The initial launch strategy could involve importing completely knocked down (CKD) units of Li Auto cars, which will be assembled at Stellantis' Ranjangaon facility. Local production will be initiated once the brand gains sufficient market traction. According to industry insiders, Stellantis could introduce Li Auto in India within the next year.

Stellantis' existing dealer network will retail Li Auto’s EV models in India. The company is optimistic about an increase in footfalls at its showrooms following the launch of these new electric vehicles. In addition to India, Stellantis also plans to introduce Li Auto's affordable electric cars in Italy.

The proposed introduction of Li Auto in India is a major step towards boosting the country's electric vehicle ecosystem. It not only mirrors the growing demand for EVs but also signifies foreign players' confidence in India as a thriving EV market.