Stellantis Plans Increased Investment in Indian Auto Market
Stellantis Eyes Growth in India
In response to intensifying competition within the Indian automotive sector, Stellantis is contemplating a fresh wave of investments in the country. The Dutch automotive conglomerate, which encompasses brands like Fiat, Jeep, Chrysler, and Peugeot, is focused on enhancing its retail presence and introducing new models in India, where its market share has fallen to a mere 1%. As the fourth-largest car manufacturer globally, Stellantis is also aiming to significantly increase its exports from India.
To date, Stellantis has invested nearly Rs 11,000 crore in the Indian market. The company has indicated that its future investment strategies will be shaped by upcoming initiatives and the balance between domestic sales and export-oriented operations.
Historically, Japanese and Korean automakers have dominated India's automotive landscape, which ranks as the third largest in the world. Additionally, local manufacturers like Tata Motors and Mahindra & Mahindra play a crucial role, collectively accounting for about 25% of total sales.
Strategic Expansion Plans
Stellantis intends to adopt a gradual strategy for expanding its footprint in India, concentrating on backend capabilities, localization, and select product offerings. The company's sustained growth will hinge on its ability to meet Indian consumer preferences and maintain competitive pricing.
Currently, Jeep's lineup includes various models, alongside Citroen offerings such as the C3 hatchback, C3 Aircross, and the newly launched Basalt. Despite having a diverse product range, the brand has struggled to achieve substantial sales figures.
In the previous year, Stellantis exported approximately 10,000 fully assembled vehicles, in addition to 300,000 engines and powertrains from India. Presently, India contributes around 2% to the group's global volume, which ranges between 5 to 6 million units. The local supply chain has also expanded, now collaborating with around 500 suppliers.