According to reports from The Times of India, Stellantis plans to nearly triple vehicle production in India to around 50,000 units next year, from about 18,000 currently. The automaker's India CEO and managing director Shailesh Hazela announced this significant expansion as part of the company's global manufacturing strategy. As Hazela explained, the expansion forms part of Stellantis's FaSTLAne 2030 strategy, positioning India as a key manufacturing and export hub in the company's global operations.
As reported by The Times of India, approximately 60% of the proposed output will be exported, while the remaining 40% will be sold domestically. Hazela explained that the vehicles exported are the same ones that the company produces in India and sells domestically, with the split maintained at 40% domestic and 60% export next year. This strategic approach leverages India's competitive cost structure and localisation potential to serve both domestic and international markets effectively.
According to the report, Stellantis manufactures vehicles at its Thiruvallur facility in Tamil Nadu, where it has partnered with Hindustan Motor Finance Corporation, an arm of the CK Birla Group, since 2017. Hazela indicated that this arrangement has helped develop local manufacturing, sourcing and engineering capabilities within India. The partnership has been instrumental in building the company's local operations and establishing a strong foundation for future growth in the Indian market.
As reported by The Times of India, Stellantis has invested close to 1 billion euros across its India operations and will continue investing in manufacturing, research and development and other areas. While Hazela did not disclose the size of the proposed additional investment, the expansion forms part of Stellantis's FaSTLAne 2030 strategy. The company is also preparing to expand its product portfolio after a relatively quiet period for launches, indicating a renewed focus on market expansion and innovation.
According to the report, India's cost structure, localisation potential and supplier ecosystem would allow the company to manufacture vehicles locally for both domestic and overseas markets. This strategic positioning reflects Stellantis's confidence in India's manufacturing capabilities and export potential in the global automotive sector. The company's commitment to India as a key manufacturing hub demonstrates its long-term strategic vision for the Indian market and its role in supporting the company's global operations.
