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Stellantis looks to India for affordable EVs for Europe

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NEW DELHI, Nov. 24 (Reuters) – Fiat parent company Stellantis (STLA.MI) The company has now concluded that affordable electric vehicles (EVs) cannot be built in Europe and is looking at lower-cost manufacturing in markets such as India, said the company’s chief executive, CEO) told reporters.

India, with its low-cost supplier base, could pave the way for exporting EVs to other markets if it can meet the company’s quality and cost targets by the end of 2023, said Group CEO Carlos Tavares. said Mr. Includes Peugeot and Chrysler.

“So far, Europe has not been able to make affordable EVs, so the big opportunity for India is to be able to sell EV compact cars at affordable prices and ensure profitability.”

Stellantis is investing heavily in EVs and plans to produce dozens over the next decade, but Tavares warned last month that affordable battery EVs are five to six years away. was doing.

During his first visit to India as CEO of Stellantis, he said the company was still working out plans to export EVs from India and had not yet made any decisions.

Potential Tavares India bet comes after American automaker ford(foreign language) and General Motors (GM.N) After failing to make money and breaking the dominance of Suzuki in Japan, it exited the world’s fourth-largest car market. (7269.T) and South Korea’s Hyundai Motor (005380.KS).

Also coming as Chinese EV makers are making Expansion into Europehas already overtaken most foreign rivals with more affordable vehicles in China, the world’s largest market for EVs, and is looking to win over buyers.

Attendees view the Chrysler Airflow concept electric vehicle unveiled at CES 2022 on January 5, 2022 at the Las Vegas Convention Center in Las Vegas, Nevada, USA. REUTERS/Steve Marcus/File Photo

Stellantis is the latest refocus A strategy in China that plans to become a niche player through the Jeep and Maserati brands. bankruptcy.

“Tensions are rising between China and the Western world, which will have business consequences. India is clearly the best force to take advantage of this opportunity,” Tavares said.

India, where Stellantis sells the Jeep and Citroen brands, accounts for a tiny fraction of the automaker’s global sales, but Tavares said the company isn’t chasing sales volume, instead making a slow profit. I said that I would like to raise it.

Tavares previously said he expects revenues in the South Asian country to more than double by 2030, with operating margins in the double digits within the next few years.

The automaker is set to launch its first EV in India. This is the electric version of the Citroën C3 compact car and will go on sale early next year.

Stellantis already manufactures its own electric motors and battery packs, and plans to manufacture battery cells as well. In India, too, Tavares wants to source EV components locally, including batteries, so it can compete on cost and price.

“The tariffs on importing cars in India are very high, which means if you want to get an affordable EV, you have to use Indian suppliers and parts and make them in India,” he said. said. Increase competitiveness by using at least 90% of parts locally.

“Today EVs are largely a question of affordability,” he said. “It’s not a technical issue.”

Reported by Aditi Shah.Edited by David Holmes and Mark Potter

Our criteria: Thomson Reuters Trust Principles.

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