Why Stellantis looks to India for the production of electric cars
During the visit to India, the CEO of Stellantis launched an ultimatum in Brussels: "So far Europe is unable to produce electric vehicles at affordable prices". Without incentives, will the Group pack up?
While French President Emmanuel Macron repeatedly asks Brussels to prepare a protectionist aid plan along the lines of the Inflation Reduction Act wanted by Joe Biden , Stellantis, despite accusations that it is now a "Francocentric" group, could dash hopes of the tenant of the Elysée and, in the absence of incentives, flee to India for the production of compact electric cars. Reuters writes this, starting from the statements that on Wednesday 23 November the CEO of the group of which Exor is the main shareholder, Carlos Tavares , made to local journalists during his visit to the subcontinent, where the company has invested over one billion in the last six years.
THE INAUGURATION OF THE STELLANTIS HI-TECH CENTER IN INDIA
The last important operation just over a month ago, namely the inauguration of a new software center in Bengaluru, Karnataka: the site will mainly deal with software development and technological innovation, aimed at the progress of cars and mobility.
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The company is also working with Indian universities to explore the development of industry-specific curriculum and support ongoing expansion. Stellantis' software-centric strategy involves deploying next-generation technology platforms, building on the existing capabilities of connected vehicles, to transform the way customers interact with their vehicles and generate €20 billion in annual incremental revenue by the 2030.
WHAT TAVARES SAID
As for the possible production of electric cars in India, the number 1 of Stellantis has released statements that sound like an ultimatum to the ears of Brussels: “So far, Europe is unable to produce electric vehicles at affordable prices. So the big opportunity for India would be to be able to sell EV compact cars at an affordable price while protecting profitability,” Tavares told reporters during a media roundtable in India late Wednesday evening. “EVs today are mostly an accessibility issue,” he said. "It's not about technology." In short, without incentives, the Group will pack up.
According to the industrial plan, Stellantis expects to produce dozens of electric models in the next decade. For the Group, the decision to focus on India could be strategic, all the more so given the fact that not only is the Chinese market now saturated, but Beijing is also preparing to flood the Old Continent with its vehicles on tap: “There it is a growing tension between China and the Western world. This will have a business impact. The power that is best placed to exploit this opportunity is obviously India,” Tavares said.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-stellantis-guarda-allindia-per-la-produzione-di-auto-elettriche/ on Fri, 25 Nov 2022 06:58:18 +0000.