Stellantis (NYSE:STLA) is looking to India for production as the automaker is looking to divert from its expensive home market in Europe.
CEO Carlos Tavares told reporters that factories in Europe are not cost-effective, requiring the other local inspection for production facilities. He pointed out that India is among the countries under scrutiny for this change.
“So far, Europe has not been able to produce affordable electric vehicles. So the big opportunity for India is to be able to sell compact electric vehicles at an affordable price, ensuring a profit,” Tavares told Reuters. “There is a growing tension between China and the Western world. That will have a business consequence. The power best placed to take advantage of this opportunity is clearly India.”
He added that the tariffs imposed on imports into the Indian market are forced to produce in India to sell to the Indian market.
Car manufacturing joint venture in China recently filed for bankruptcy.