Stellantis is looking to build electric vehicles in India that could potentially be exported to Europe, taking advantage of India's low labor costs, CEO Carlos Tavares said.
Tavares made the remarks to journalists during a visit to Chennai, where Stellantis' technology center is located, according to Reuters.
According to Reuters, “Europe has so far been unable to produce affordable electric vehicles, so the big opportunity for India is to be able to sell compact electric vehicles at affordable prices. "We're working on it, but we haven't decided yet. We're trying."
Stellantis is investing heavily in electric vehicles, it plans to produce dozens of electric vehicles over the next decade, but Tavares warned last month that affordable battery-powered electric vehicles are five to six years away.
Tavares' possible bet on India comes after Ford and GM have exited the world's fourth-largest car market, after failing to make money and break the dominance of Suzuki and Hyundai Motor there.
It also comes as Chinese EV makers are making inroads into Europe, aiming to win over buyers with more affordable cars having already stolen a march on most foreign rivals in China, the world's biggest market for EVs.
EV for India due in 2023
On his first visit to India since taking over as Stellantis CEO he said the company is still working out a plan regarding EV exports from the country and had not yet made any decisions.
In May of this year, Tavares told Indian journalists that Stellantis would launch a small electric vehicle in 2023 based on the group’s Smart Car platform, a new architecture that underpins the Citroen New C3, a sub-four-meter car for India and other developing markets.
He said at the time that it was key to find local sourcing in India for batteries, which are the largest single cost of electric vehicles.
The Smart Car architecture shares some components with Stellantis' CMP platform for small and compact cars, including full-electric versions of models such as the Peugeot 208.
After the launch of the new C3 this year, two more Citroën models are expected to join the smart car platform by 2024
. In addition to the Citroen, Stellantis sells the Jeep brand in India with models such as the Compass-based Meridian, his seven-seat SUV.
Stellantis expands presence in India, the world's fifth largest automotive market. It has two assembly plants (one for Citroen and one for Jeep), an engine plant in a joint venture with an Indian partner, and an information technology center.
Stellantis has also opened a software center in Bangalore, which will be the primary development center for STLA SmartCockpit, one of his three technology platforms that Stellantis will roll out from 2024. It focuses on the digital integration of vehicles and drivers.