Tech

Stellantis may come to India to make affordable electric cars for Europe


Stellantis, Fiat’s parent company, has concluded that it is currently unable to produce affordable electric vehicles (EVs) in Europe and is looking at lower-cost production in markets such as India. Its executives told reporters.

If India, with its low-cost supply base, can meet the company’s cost and quality targets by the end of 2023, it could open up export opportunities. tramCarlos Tavares, CEO of the group whose brands include Peugeot and Chrysler, said.

“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, protecting profits,” Tavares told reporters at a media roundtable in India late Wednesday.

Stellantis is investing heavily in electric vehicles and plans to make dozens of them over the next decade, but Tavares warned last month that affordable battery electric vehicles will be five to six years away.

On his first visit to India since coming to power Stellantis CEO, he said the company is still drawing up plans regarding the export of electric vehicles from the country and has not made any decisions yet.

Tavares’ possible bet on India comes after US automakers Ford and common engine exited the world’s fourth-largest car market, after failing to make money and breaking Japan’s dominance. suzuki motorcycle and Korea Hyundai cars.

It also comes as Chinese electric vehicle makers are making inroads in Europe, aiming to win over buyers with more affordable cars that have beaten most foreign rivals in China, a market where Largest electric car in the world.

Stellantis is the latest company to refocus its strategy in China, where it now plans to become a niche player through the Jeep and Maserati brands, after announcing its Jeep venture in the country. The country will file for bankruptcy.

“The tension between China and the Western world is increasing. That will have consequences on the business side. The power best placed to take advantage of this opportunity is clearly India,” Tavares said. .

India, where Stellantis sells the Jeep and Citroen brands, accounts for a portion of the automaker’s global sales, but Tavares said the company isn’t chasing volume and instead wants to pick it up slowly and profitable.

Tavares previously said he expects revenue in the South Asian country to more than double by 2030 and operating margins to stay in double digits over the next few years.

The automaker plans to launch its first EV in India – an electric model of the Citroen C3 compact car – early next year.

Stellantis already produces its own electric motor and battery pack, and also plans to produce batteries. In India, too, Tavares wants to buy EV parts locally, including batteries, so that it can be cost- and price-competitive.

“The import tax on cars in India is very high. That means if you want an affordable electric vehicle, it has to be made in India with Indian suppliers and components.” , he said, adding the company will need to source at least 90 percent of its domestic divisions to be competitive.

“EVs today are mostly a matter of affordability,” he said. “It’s not about technology.”

© Thomson Reuters 2022


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