Stellantis to nearly triple vehicle production in India, exporting 60% of output

Stellantis, the multinational automaker, is set to significantly expand its operations in India, with plans to nearly triple vehicle production to around 50,000 units next year. According to Stellantis India CEO and managing director Shailesh Hazela, approximately 60% of the proposed output will be exported.

Meanwhile, the remaining 40% will be sold domestically.

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The company's expansion is part of its ambitious FaSTLANE 2030 roadmap, which aims to tap into India's favorable business climate. The country's cost-efficient setup, combined with a thriving local supply chain, enables Stellantis to produce vehicles for both domestic and international markets.

As part of its strategy, Stellantis has partnered with Hindustan Motor Finance Corporation since 2017. This partnership has helped develop local manufacturing, sourcing, and engineering capabilities, which will be vital in supporting the company's expanded operations.

The Thiruvallur facility in Tamil Nadu, where Stellantis manufactures vehicles, is set to play a key role in the company's expansion plans. With its existing production capacity, the facility will need to be upgraded to meet the increased demand for vehicles.

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As part of a significant expansion effort, Stellantis is pouring approximately 1 billion euros into its Indian operations, with a focus on bolstering manufacturing capabilities, fostering innovation through research and development, and investing in other key areas. This influx of capital is poised to drive up vehicle production and contribute to the growth of India's burgeoning automotive sector.

The expansion is also seen as a significant shift towards increased diversity in Stellantis' offerings. Following a lull in new models, the automaker is poised to revitalize its lineup with a slate of upcoming additions. This marked a positive development for the company's prospects in the Indian market.