NEW DELHI (Reuters) – Stellantis chief Carlos Tavares expects India to be a lucrative market and more growth-friendly than previously expected by the automaker as it faces challenges in countries like China and Russia. India, where Stellantis sells its Jeep and Citroen brands, accounts for a share of global carmaker sales, but Tavares said he expects South Asian revenue to more than double by 2030 and operating profits to double-digit next. a couple of years.
Western carmakers are struggling to make money in India, a market dominated by Asian Suzuki Motor and Hyundai Motor with their small low-cost cars. Last year, Ford Motor Co became the last carmaker to stop selling cars in India. “You can be profitable in India if you do everything Indian. The reason why some Western carmakers have failed is that they have not acknowledged it, ”Tavares said at a virtual roundtable for the media late Tuesday.
This, he said, includes finding spare parts locally and vertically, integrating into supply chains to keep costs low, and building cars with features that Indian consumers want and are willing to pay for. Stellantis, created in early 2021 as a result of the merger of the French PSA with Fiat Chrysler (FCA), in March outlined a new strategy of the group, which intensifies efforts to produce electric vehicles (EVs), while maintaining profitability.
The focus on India comes at a time when the world’s fourth-largest automaker is facing obstacles in China, where it is changing its strategy amid a backlog of sales, and in Russia, where it has suspended production due to the war in Ukraine. “The problems … give India more opportunities, even more than in the past,” Tavares said.
(Report by Aditi Shah; Edited by Kim Kogil)
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from the syndicated tape.)
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