The chief executive of the multinational automotive manufacturing corporation Stellantis N.V. recently told a media outlet that the company is looking at lower-cost production in countries like India since it is now unable to produce affordable electric cars (EVs) in Europe. According to Carlos Tavares, CEO of the group whose brands also include Peugeot and Chrysler, if India, with its low-cost supplier base, is able to satisfy the company’s quality and cost requirements by the end of 2023, it might pave the way for the export of EVs to other countries.
Tavares during a media interaction in Chennai said, “There is a big opportunity for India to be able to sell EV compact cars at an affordable price protecting the profitability. Because the country has such a cost-competitive supplier base, so it (exports to Europe) is possible.” He added “If within the next 12 months, we achieve the quality numbers and the cost numbers, then we will be able to export. One of the obvious targets is Southeast Asia,”.
Although Tavares cautioned last month that inexpensive battery EVs were between five and six years away, Stellantis is significantly investing in EVs and aims to create dozens in the next ten years. On his first trip to India after taking over as CEO of Stellantis, he stated that the company was still formulating a strategy for exporting electric vehicles from the nation and had not yet made any decisions. Following the exodus of American automakers Ford and General Motors from the fourth-largest auto market in the world due to their inability to turn a profit and challenge the supremacy of Japan’s Suzuki Motor Corp. and South Korea’s Hyundai Motor, Tavares may gamble on India.
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According to reports, it is believed that this move from Stellantis comes at a time when Chinese EV manufacturers are expanding into Europe in an effort to attract customers with more relatively affordable vehicles after having beaten out most international competitors in China, the largest market for EVs in the world. Following its announcement that its Jeep joint venture in the nation will file for bankruptcy, Stellantis is the most recent company to rethink its strategy in China, where it now wants to be a niche player through its Jeep and Maserati brands. Tavares added that “There is a growing tension between China and the Western world. That is going to have a consequence in terms of business. The power that is best placed to leverage this opportunity is obviously India,”
In the past, Tavares has predicted that by 2030, sales in the South Asian country will have more than doubled, and operating profit margins will be in the double digits. The automaker intends to introduce its first electric vehicle (EV) in India early the following year with an electric version of the Citroen C3. Stellantis has aspirations to manufacture battery cells in addition to currently producing its own electric motors and battery packs. Tavares wants to buy EV parts domestically in India as well, including batteries, so that it can compete on pricing and cost.
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The chief executive of the multinational automotive manufacturing corporation Stellantis N.V. recently told a media outlet that the company is looking at lower-cost production in countries like India since it is now unable to produce affordable electric cars (EVs) in Europe. According to Carlos Tavares, CEO of the group whose brands also include Peugeot and Chrysler, if India, with its low-cost supplier base, is able to satisfy the company’s quality and cost requirements by the end of 2023, it might pave the way for the export of EVs to other countries.
Tavares during a media interaction in Chennai said, “There is a big opportunity for India to be able to sell EV compact cars at an affordable price protecting the profitability. Because the country has such a cost-competitive supplier base, so it (exports to Europe) is possible.” He added “If within the next 12 months, we achieve the quality numbers and the cost numbers, then we will be able to export. One of the obvious targets is Southeast Asia,”.
Although Tavares cautioned last month that inexpensive battery EVs were between five and six years away, Stellantis is significantly investing in EVs and aims to create dozens in the next ten years. On his first trip to India after taking over as CEO of Stellantis, he stated that the company was still formulating a strategy for exporting electric vehicles from the nation and had not yet made any decisions. Following the exodus of American automakers Ford and General Motors from the fourth-largest auto market in the world due to their inability to turn a profit and challenge the supremacy of Japan’s Suzuki Motor Corp. and South Korea’s Hyundai Motor, Tavares may gamble on India.
Also read: 10 DC Design cars & how they look in the REAL world: Maruti Swift to Mahindra XUV500
According to reports, it is believed that this move from Stellantis comes at a time when Chinese EV manufacturers are expanding into Europe in an effort to attract customers with more relatively affordable vehicles after having beaten out most international competitors in China, the largest market for EVs in the world. Following its announcement that its Jeep joint venture in the nation will file for bankruptcy, Stellantis is the most recent company to rethink its strategy in China, where it now wants to be a niche player through its Jeep and Maserati brands. Tavares added that “There is a growing tension between China and the Western world. That is going to have a consequence in terms of business. The power that is best placed to leverage this opportunity is obviously India,”
In the past, Tavares has predicted that by 2030, sales in the South Asian country will have more than doubled, and operating profit margins will be in the double digits. The automaker intends to introduce its first electric vehicle (EV) in India early the following year with an electric version of the Citroen C3. Stellantis has aspirations to manufacture battery cells in addition to currently producing its own electric motors and battery packs. Tavares wants to buy EV parts domestically in India as well, including batteries, so that it can compete on pricing and cost.
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