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NEW DELHI – Carlos Tavares, head of Stalantis, hopes India will be a lucrative market and a big growth opportunity for carmakers as expected, as it has been challenged in countries like China and Russia.
India, where Stellantis sells its Jeep and Citroen brands, makes up a fraction of the global carmaker’s global sales, but Tavares says he expects the South Asian nation’s revenue to more than double by 2030 and its operating profit margin to double in the future. For some years.
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Western carmakers have struggled to make money in India, a market dominated by Asia’s Suzuki Motors and Hyundai Motors for their small, low-cost cars. Last year, Ford Motor Co became the latest car maker to stop selling cars in India.
“It is possible to be profitable in India if you act like India. The reason some Western carmakers fail is because they don’t recognize it, “Tavares told a virtual media roundtable late Tuesday.
According to him, this includes locally sourcing parts and integrating the supply chain vertically to keep costs down and create cars with features that Indian consumers want and are willing to pay for.
Stellantis, formed in early 2021 through the merger of France’s PSA with Fiat Chrysler (FCA), outlined a new group strategy in March, as it increased efforts to launch electric vehicles (EVs) while maintaining profitability.
The focus on India comes at a time when the world’s fourth-largest carmaker is facing headaches in China, where it is changing its strategy in lagging sales, and in Russia, where it has suspended production due to the Ukraine war.
“The challenges are giving India a great opportunity, even bigger than in the past,” Tavares said. (Reporting by Aditi Shah; Editing by Kim Kogil)