Stellantis' "cheap" electrics could come from India

Test Fiat 500e

The electrification of the automotive sector is a major headache for brands and the set of actors that make it up. All their efforts to develop this technology are coming to nothing because of the transfer of costs to customers. Without the support of institutions and governments around the world they have to adopt an equidistant position. But it seems that the "solution" to the dilemma would once again be in the "third world".

As you well know, brands have been relocating the production of their models for years. Europe and America are expensive and producing in depending on which areas of both continents supposes an additional cost to the accounts of the brands. So the only "alternative" left for them to adjust numbers is go to Latin America (Mercosur), Asia or certain regions of Africa. And Stellantis is one of the companies that would like to get the most revenue out of this complex situation...

Carlos Tavares, CEO of Stellantis, believes that manufacturing its A and B segment electrics in India would make them cheaper...

Citroën My AMI Tonic

The Hindu division of Stellantis is one of the ones that has been giving the most problems. The reason was due to the inability to make it profitable as Citroën's structure and range of models did not help. But it seems that everything has improved and with the launch of the latest Citroën C3 things are improving. So much so that he has dared to indicate that manufacturing of its A and B segment electric vehicles could take place in India.

And the reason for that has to do with the India's low labor costs. As he has expressed to various media...

"Until now, Europe can't make affordable electric vehicles. Therefore, there is a huge opportunity for India to sell compact EV cars at an affordable price while protecting profitability. Because the country has such a cost-competitive supplier base, it is possible."

«The biggest challenge is how to make electric vehicles affordable for the middle class. Only affordability can create scale and only then can you have a significant impact on the environment."

Jeep Electric B-SUV
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The reason for these words has to do with the possibility of bring to Europe the electric version of the Citroën C3 that they are preparing for India. Its official debut is scheduled for the first days of 2023 and although it is a model created for the Indian client, Tavares says that it has good quality. In fact, he claims that...

"Because we can offer a world benchmark in quality at a very competitive price, it can be possible. This is not decided yet, but this is what we are trying to do in 2023. Those are the doors that can be opened for India."

We will have to see if Tavares manages to relocate the production of its electric segments A and B to India. And most interestingly, when and if they meet the promised quality...

Source - Coach Professional - AP by Twitter


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