Stellantis Targets Profitability In India, Doubling Of Revenues By 2030

Stellantis has now taken proper shape and is running as one company, with one mission and one purpose, says its CEO Carlos Tavares. In his first interaction with Indian press after the formation of Stellantis in 2021, Tavares laid out a very clear plan for India. Unlike most automakers, the company will focus not on market share or volume in India, but on profitability. "The region (India and Asia Pacific) must double its net revenues in the nine years from 2021 to 2030," says Tavares, adding "India will be at double digit margins in a couple of years. The rest of the region is already there." Tavares says that the 'Dare Forward 2030' plan that Stellantis has set for its operations worldwide, will be followed just as diligently in India. The plan seeks profitable growth first - for all 14 vehicle brands - in any and all markets that they may operate in globally. The ambitious target of achieving margins over 10 per cent for the India business (comprising Citroën and Jeep brand operations) was put into motion earlier this year. Stellantis says a lot of the preparatory work for achieving these stiff targets has already been done - including increasing local content in its India-made cars.

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Carlos Tavares, CEO Stellantis revealed the company's strategy during an interaction with a select group of Indian journalists

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But what's significant here is that Stellantis is not attaching a market share or volumes target to its India plan. That means that it is willing to adopt a smaller presence, as long as it ensures stronger profitability and sustains the business for a longer term.

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Responding to a query from carandbike regarding volumes, Tavares said, "You will be surprised to see that there is no reference to any kind of volume in Dare Forward 2030. We say we will double net revenue, and we will keep operating income margin at about 10 per cent. And we don't mention volume because we believe the world is changing, and in some cases being too big may be a penalty. You need to create value rather than push for volume. We are not putting the focus on volume". Tavares also went on record to say that Stellantis is here to stay, and will not exit India as some other global brands have done.

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Jeep's focus will remain the heavily localised 'FCA small wide platform', which underpins the soon to be launched Meridian 3-row SUV.

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The big thrust of this plan will come from Citroën's 'smart car platform' - a modular platform that will spawn at least 3 models. Jeep's focus will remain the heavily localised 'FCA small wide platform'. Both brands will also have some of their global models playing a limited volumes role too (cars like the Citroën C5 Aircross, upcoming Jeep Grand Cherokee, etc.). Citroën's smart car platform (previously referenced as 'C Cubed') and all new product development for India also takes into account electrification. Battery electric vehicles (BEVs) form a key part of Stellantis' global plan, with 19 EV models already across all brands. That number will increase to 32 by this year end, and 75 pure EV models by 2030. EVs will play a role in India too - though a more limited one. India will get the first BEV from Citroën in 2023.