Home tech how to Cricket Created by potrace 1.15, written by Peter Selinger 2001-2017 shop more
Stellantis May Come to India to Make Affordable EVs for Europe | Details Inside | 2YODOINDIA

Stellantis May Come to India to Make Affordable EVs for Europe | Details Inside

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 :

“So far, Europe is unable to make affordable EVs. So the big opportunity for India would be to be able to sell EV compact cars at an affordable price, protecting profitability,”.

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.

ALSO READ  AirCar : The Flying Car completes its First ever Inter-City Flight | Watch Video

Carlos Tavares Said :

“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,”.

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 :

“The customs duties to import a car in India are sky high. Which means if you want to have an affordable EV, it has to be made in India with Indian suppliers and components,”.

He adding the company would need to source at least 90 percent of parts locally to be competitive.

Carlos Tavares Said :

“EV today is mostly an affordability problem,”.

“It’s not about technology.”

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *