Stellantis doesn’t believe it can make affordable electric vehicles in Europe and is weighing up the possibility of building EVs in India for potential export to the Old Continent.
While recently speaking with the media on his first trip to India since taking over the reigns of Stellantis, chief executive Carlos Tavares said that the low-cost supplier base in India could meet the automaker’s quality and cost targets by the end of 2023.
“So far, Europe is unable to make affordable EVs, so the big opportunity for India would be to be able to sell EV compact cars at an affordable price,” Tavares said. “This is what we are working out but it is not decided. This is what we are trying to do.”
Read: Stellantis Is Eyeing India As An Important Growth Market
While Tavares acknowledged that India only accounts for a fraction of the company’s global sales, he said the brand wants to locally procure EV components, including batteries.
“The customs duties to import a car in India are sky high. Which means if you want to have an affordable EV, it has to be made in India with Indian suppliers and components,” he said. “EV today is mostly an affordability problem. It’s not about technology.”
Stellantis has already confirmed that it will launch a small EV in India next year using its Smart Car platform currently underpinning the Citroen New C3. The automaker is also planning two more Citroen models based on the Smart Car platform.
While the car manufacturer intends on building dozens of electric vehicles over the coming decade, Tavares recently said that affordable EVs are five to six years away.
Stellantis currently operates two assembly plants in India, Auto News reports, as well as an engine plant and an information technology center. It also recently opened a software hub in Bengalaru that will serve as a key development center for one of the company’s technology platforms.
