Stellantis chief expects India to be a profitable market and a bigger growth opportunity than the carmaker previously expected as it faces challenges in countries such as China and Russia
Credits: ERIC PIERMONT/AFP

Stellantis chief expects India to be a profitable market and a bigger growth opportunity than the carmaker previously expected as it faces challenges in countries such as China and Russia

India, where Stellantis sells its Jeep and Citroen brands, makes up a fraction of the carmaker's global sales but Tavares said he expects revenues in the South Asian nation to more than double by 2030 and operating profit margins to be in double-digits within the next couple of years.Western carmakers for years have struggled to make money in India, a market dominated by Asia's Suzuki Motor and Hyundai Motor with their small, low-cost cars.

"Being profitable in India is possible if you do things the India way," Tavares said at a virtual media roundtable late on Tuesday.

This, according to him, includes sourcing parts locally and vertically integrating the supply chain to keep costs low, and engineering cars locally with features Indian consumers want and are willing to pay for.

Stellantis, formed at the start of 2021 through the merger of France's PSA with Fiat Chrysler (FCA), in March outlined a new group strategy to boost revenues and keep profit margins high as it steps up efforts to roll out electric vehicles (EVs). 

The focus on India comes at a time when the world's fourth-largest carmaker is facing headwinds in China, where it is reshuffling its strategy amid lagging sales and strong competition, and in Russia, where it has suspended production due to the Ukraine war.

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