Stellantis, Fiat’s parent company stated that it has decided not to make electric vehicles in Europe at the moment and that it is now looking into lower-cost manufacturing options in countries similar as India.
The company may also explore openings to export affordable, India-made EVs to European requests, but no decision has been taken as yet, said Tavares, who was in India to review operations of Citroen’s Hosur and Tiruvallur manufactories in Tamil Nadu.
Stellantis aims early gains in India’s EV market
With its low-cost supplier base, India could be suitable to meet the company’s quality and cost targets by 2023-end. This would open the doors to exporting EVs into other requests, stated Carlos Tavares (CEO of the group).
“So far, Europe has not been able to produce affordable EVs. The big opportunity for India is to be able to sell compact EVs at an affordable price while protecting profitability,” Tavares stated to journalists during a media symposium in India.
Stellantis has made a significant investment in EVs and plans to make dozens over the coming decade. But Tavares advised last week that it was still five to six times before affordable battery EVs are available. He said that Stellantis was still developing a plan for EV exports to India and that he hadn’t taken any decision yet.
There’s adding pressure between China, the West, and China. This is going to have an impact on business. India is the country that has the most power to take advantage of this occasion, Tavares stated.
India is where Stellantis sells its Jeep and Citroen brands. still, Tavares stated that the company was n’t chasing volume but rather wanted to grow sluggishly and profitably. Tavares preliminarily stated that he anticipated earnings to further than double in South Asia by 2030 and that operating profit perimeters would be double- integers in the coming many times.
The automaker will launch India’s first EV – an electric interpretation of its Citroen C3 compact vehicle – in the early part of coming time. Stellantis makes its own battery packs and electric motors and plans to produce battery cells. Tavares also plans to land original factors for EVs in India.
The customs duties for importing a auto into India are extremely high. This means that if you want an affordable electric vehicle, it must be made in India by Indian suppliers and factors. He also said that the company would need at least 90 original corridor to remain competitive.
