Stellantis CEO Carlos Tavares expects India to be a profitable auto market and a bigger growth opportunity than the automaker previously expected as it deals with the hurdles in countries such as China and Russia.
India, where Stellantis sells its Jeep and Citroen brands, comprises a fraction of the automaker’s worldwide sales but Tavares said he expects revenues in India to more than double by 2030 and operating profit margins to be in double-digits under the next couple of years.
Western automakers for years have struggled to make a significant profit in India, as the market is dominated by Suzuki Motor and Hyundai Motor with their small, low-cost cars.
Since 2015, Stellantis has invested more than 1 billion euros ($1.05 billion) in its Indian operations.
The carmaker also looks to source cells and batteries from India whenever the supply chain develops, Tavares said, adding that this would be the only way for building affordable EVs.
Stellantis has less than 1% of India’s auto market of 3 million units a year but Tavares said he is not chasing volumes in India or worldwide.
“We believe the world is changing and in some cases being too big maybe a penalty,” he said.