STELLANTIS is considering building its EV models in India for potential export to Europe because high costs in the EU mean that car makers cannot make EVs at a profit.
Speaking from Chennai where Stellantis has a technical centre, CEO Carlos Tavares told the media that it would capitalise on India’s low labour costs.
“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,” Mr Tavares said in an interview with Reuters.
“This is what we are working out but it is not decided. This is what we are trying to do.”
Stellantis is investing heavily in EVs and plans to produce dozens of electric models in the coming decade. But Mr Tavares warned last month that affordable BEVs were between five and six years away.
His comments on India come after Stellantis brand Jeep pulled out of its factories in China and after Ford and GM exited India. Ford and GM cited a failure to make money and break the dominance in India of Suzuki and Hyundai.
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.
In May 2022, Mr Tavares told Indian journalists that Stellantis would launch a small electric vehicle in 2023 based on the group’s Smart Car platform, a new architecture that underpins the new Citroen C3, a sub-four-metre car for India and other developing markets.
He said at the time that it was key to find local sourcing in India for batteries, which are the largest single cost of electric vehicles.
The Smart Car architecture shares some components with Stellantis’ CMP platform for small and compact cars, including full-electric versions of models such as the Peugeot 208.
Following the launch of the new C3 in 2022, there will be two more Citroen models on the Smart Car platform by 2024. In addition to Citroen, Stellantis sells the Jeep brand in India, with models that include the Meridian, a seven-seat SUV based on the Compass.
Stellantis is expanding its presence in India, the world’s fifth-largest automotive market. It has two assembly plants (one each for Citroen and Jeep) and an engine plant in joint ventures with Indian partners, as well as an information technology centre.
It has also just opened a software hub in Bengalaru (Bangalore) that will be the main development centre for one of the three technology platforms Stellantis will start deploying in 2024, the STLA SmartCockpit, focusing on digitally integrating vehicles and drivers.
