Photo: Peugeot
With the 2035 ICE ban edging closer in Europe, automobile manufacturers in the region are strategically placing themselves at the forefront to rip the benefits. As a result, the focus now shifts from efficiency to affordability. Eager to capture the market, Stellantis is looking to build electric vehicles in India to export them to Europe.
Stellantis has concluded it currently can’t build affordable electric vehicles in Europe. Stellantis CEO Carlos Tavares told reporters that Europe cannot produce affordable EVs, and shifting locations to India could significantly reduce manufacturing costs. Apart from Dodge and Jeep, the carmaker also has a few major European brands in its portfolio, such as Fiat, Peugeot, Jeep, and Opel.
“So far, Europe is unable to make affordable EVs. So the big opportunity for India would be to sell EV compact cars at an affordable price, protecting profitability,” Tavares said.
Stellantis, like other leading automakers in the continent, is channeling much of its muscle to develop electric vehicles with the 2035 ICE ban in sight. CEO Tavares has been vocal about keeping the electric vehicle market competitive and focused on affordability.
Last year during a Detroit event hosted online by Automotive Press Association, he emphasized that electric vehicles must be affordable.
“We don’t want to disconnect with the middle classes,” Tavares said. But, in his opinion, staying affordable and developing new electric car technology (40% more expensive) requires the market to focus on cost reduction.
Earlier this year, before launching Stellantis’ long-term plan, the CEO stated that automakers alone can’t bare the costs associated with producing EVs. As a result, he considers that suppliers will have to absorb some of the expenses associated with production to ensure the new line of automobiles will remain affordable for the masses.
Still, Tavares warned last month that affordable battery electric vehicles are five to six years away.
The automaker’s decision on India comes after American carmakers Ford and General Motors exited the market after failing to beat Suzuki and Hyundai Motors in the region.
According to Autonews, the decision to move to India is still in the planning stages, and Stellantis has not yet made any conclusions to move forward.
“So far, Europe is unable to make affordable EVs. So the big opportunity for India would be to sell EV compact cars at an affordable price, protecting profitability,” Tavares said.
Stellantis, like other leading automakers in the continent, is channeling much of its muscle to develop electric vehicles with the 2035 ICE ban in sight. CEO Tavares has been vocal about keeping the electric vehicle market competitive and focused on affordability.
Last year during a Detroit event hosted online by Automotive Press Association, he emphasized that electric vehicles must be affordable.
“We don’t want to disconnect with the middle classes,” Tavares said. But, in his opinion, staying affordable and developing new electric car technology (40% more expensive) requires the market to focus on cost reduction.
Earlier this year, before launching Stellantis’ long-term plan, the CEO stated that automakers alone can’t bare the costs associated with producing EVs. As a result, he considers that suppliers will have to absorb some of the expenses associated with production to ensure the new line of automobiles will remain affordable for the masses.
Still, Tavares warned last month that affordable battery electric vehicles are five to six years away.
The automaker’s decision on India comes after American carmakers Ford and General Motors exited the market after failing to beat Suzuki and Hyundai Motors in the region.
According to Autonews, the decision to move to India is still in the planning stages, and Stellantis has not yet made any conclusions to move forward.
Stellantis could build EVs in India, CEO Carlos Tavares says https://t.co/PM83gbVNaL pic.twitter.com/2thVTyUDit
— AutoNews Europe (@AutoNewsEurope) November 24, 2022
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