Stellantis may move electric car assembly to India to save money

Stellantis may move electric car assembly to India

By the end of 2023, India will produce enough quality parts

Stellantis is considering moving the production of electric vehicles to India and then exporting them, as it is too expensive to assemble them in Europe. Carscoops writes about this with reference to the executive director of the alliance, Carlos Tavares. According to him, while it is impossible to produce affordable electric vehicles in Europe, there is such an opportunity in India, which by the end of 2023 will increase the base of suppliers of inexpensive and high-quality components.

A decision on the issue of establishing the assembly of electric cars in India has not yet been made, but it is on the agenda, Tavares said. This is far from a key market for Stellantis, but the country provides an opportunity to significantly reduce the cost of production if all components are purchased locally – including batteries. “Today, electric vehicles are mostly an affordability issue. It’s not about technology,” said the top manager.

Next year, Stellantis is set to launch a small electric vehicle in India based on the platform that underpins the Citroen C3. Whether it will go for export is still unknown. The alliance now has two assembly plants in India, an engine manufacturing plant, and a recently opened software development center in Bangalore.

Stellantis, like many other auto giants, has big plans for electric cars. According to the Dare Forward 2030 strategy, in eight years all brands controlled by him will sell only “green” cars in Europe. To this end, 75 new electric vehicles will be produced by 2030, while only 25 new products with internal combustion engines are planned.

Despite the alliance’s ambitions, Tavares has repeatedly questioned the profitability of the battery car trade. At the beginning of the year, he again criticized the wholesale electrification, calling it a decision of politicians, not the auto industry, and predicted the dire consequences of changing the industry. He also noted that the benefits of electric cars for the environment are exaggerated.