Stellantis is weighing the idea of manufacturing electric vehicles in India, citing the growing cost of making them in Europe. The automaker aims to take advantage of India’s lower labor costs, Chief Executive Carlos Tavares told Reuters. His comments come as the auto group is investing heavily in electric vehicles, with plans to produce dozens of them over the next decade. However, even if Stellantis starts producing affordable electric vehicles in India, finding local sources of batteries will remain a concern for the company.
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Talking about India’s electric vehicle manufacturing plans, Stellantis’ CEO said that Europe is currently unable to produce affordable electric vehicles, so the big opportunity for India is to sell electric compact vehicles at affordable prices. He also said that at present, car companies are brewing this plan, but there is no conclusion yet. The Stellantis boss also said last month that affordable battery electric vehicles are five to six years away. Talking further about the company’s plans to manufacture electric vehicles in India, Tavares hinted that it is considering the idea of exporting electric vehicles made in India to Europe, where demand for new energy vehicles is growing rapidly.
His comments come as Chinese electric car makers are making inroads into Europe, aiming to tap a large consumer base with more affordable vehicles. Keeping an eye on the auto company’s plans and Tavares’ comments, if Stellantis enters India to produce EVs, it could be a major milestone for the country’s auto industry as well as the local EV market.
Interestingly, Stellantis may bet on India after two US auto giants, Ford and General Motors, pulled out of the world’s fourth-largest auto market. Both car companies have failed to make money and break the dominance of Maruti Suzuki and Hyundai in India.
First published date: November 25, 2022 at 17:10 pm CST
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