Fiat parent Stellantis has conclude it can’t currently make affordable electric vehicles (EVs) in Europe and is looking at lower-cost manufacturing in markets such as India, its chief executive said.
If India, with its low-cost supplier base, is able to meet the company’s quality and cost targets by the end of 2023, it could open the door to exporting EVs to other markets, said Carlos Tavares, CEO of the group whose brands also include Peugeot and Chrysler.
Carlos Tavares Said :
Stellantis is investing in EVs and plans to produce dozens in the coming decade, but Carlos Tavares warn last month that affordable battery EVs were between five and six years away.
On his first visit to India since taking over as Stellantis CEO, Carlos Tavares said the company was still working out a plan regarding EV exports from the country and had not yet taken any decisions.
Carlos Tavares’ possible bet on India comes after American carmakers Ford and General Motors have exit the world’s fourth-largest car market, after failing to make money and break the dominance of Suzuki Motor and Hyundai Motor.
It also comes as Chinese EV makers are making inroads into Europe, aiming to win over buyers with more affordable cars having already stolen a march on most foreign rivals in China, the world’s biggest market for EVs.
Stellantis is the latest to refocus its strategy in China where it now plans to be a niche player through its Jeep and Maserati brands, after it said its Jeep joint venture in the country would file for bankruptcy.
Carlos Tavares Said :
India, where Stellantis sells its Jeep and Citroen brands, accounts for a fraction of the carmaker’s global sales, but Carlos Tavares said the company was not chasing volume and instead want to ramp up slowly and profitably.
Carlos Tavares has previously said he expects revenues in the South Asian nation to more than double by 2030 and operating profit margins to be in double-digits within the next couple of years.
The carmaker plans to launch its first EV in India, an electric model of its Citroen C3 compact car early next year.
Stellantis already makes its own electric motors and battery packs, and also has plans to make battery cells.
In India, too, Carlos Tavares wants to locally procure EV components, including batteries so it can be competitive on cost and price.
Carlos Tavares Said :
He adding the company would need to source at least 90 percent of parts locally to be competitive.
Carlos Tavares Said :