Stellantis bets high on India, be launching the company’s first electric vehicle by next year. The vehicle will be launched under the Citroen brand next year. According to the company Group’s CEO Carlos Tavares, India’s market is expected to grow faster with measures like localization.
Stellantis was formed with a major merger between Franch automaker PSA Group and Italian-American automaker Fiat Chrysler Automobiles. Tavares said, “We are quite confident regarding India. We are working towards localization. Our first EV will come next year,”
Its plan is to launch EVs in the sports utility vehicle segment and compact sub-four meter segment in India. The EVs that they are going to be launched will be engineered in India and will be part of Citroen’s smart car platform program. Currently, Stellantis sells around 19 EV models all over the world. These numbers are planned to be raised to 32 by next year. By the end of this decade, the automaker will have 75 EV models. He said, “The challenge in introducing an EV is twofold. One is the need to charge with clean electricity and another one is affordability. There is a significant price gap between EVs and conventional technology. Basically, an EV is 40-50 percent more expensive than conventional technology,” The EV roadblocks all over the world continue.
Electrification
According to the road map, the company plans to make 90 percent of EVs through localization. He added that the company may look for tie-ups with local players if batteries are also available for sourcing in the domestic market. EVs may constitute 100 percent of their sales in Europe, 50 percent in the US, and around 25-30 percent in India by 2030. “I think that by 2025 EVs are going to be 5 percent to 10 percent in terms of the mix, and by the end of the decade, perhaps 25 percent to 30 percent,” Tavares said.
The company operates three manufacturing plants in India Ranjangaon, Maharashtra, Hosur, and Tiruvallur in Tamil Nadu. Last year, the company announced investments of around $250 million to grow its presence in India with the launch of four new jeep models. In the Indian market, western carmakers struggle to make a mark because of losses. “Being profitable in India is possible if you think the Indian way – being smart and frugal,” Tavares said. “Being worthwhile in India is feasible if you happen to assume the Indian means – being sensible” he mentioned according to another news media, including that it’s ensuring that vehicles are engineered in India with localized elements.