9 months ago
Stellantis Boosts India Investment, Targets ₹10,000 Cr Supplier Value
A big car company called Stellantis wants to spend more money on parts from Indian companies.
Right now, they spend about ₹4,000 crore, but they plan to spend ₹10,000 crore by next year.
They already have factories, tech centers, and research places in India.
They want to sell more cars by opening new stores every month.
They also send many cars and parts from India to other countries.
Stellantis plans to increase its direct and indirect supplier value in India to ₹10,000 crore by next fiscal, up from ₹4,000 crore.
The company has invested ₹11,000 crore in India, operating three manufacturing facilities, three ICT centers, and two R&D centers.
Stellantis aims to expand its retail network by adding 7-8 outlets monthly, targeting 150 touchpoints across India by March FY26.
The automaker exported approximately 10,000 fully built vehicles and 300,000 engines and powertrains from India last year.
Stellantis targets monthly sales of 2,000 cars for its Citroën brand in India, up from less than 500 currently.
- Who
- Stellantis (global automaker) and its CEO and Managing Director, Shailesh Hazela.
- What
- Plans to significantly increase direct and indirect supplier value in India and expand its retail network.
- Where
- India, with existing manufacturing, ICT, and R&D centers, and planned retail expansion across the country.
- When
- Supplier value target set for the next fiscal year. Retail expansion aims for 150 touchpoints by March FY26, adding 7-8 outlets monthly.
- Why
- To strengthen its presence and operations in the Indian market, boost local sourcing, and increase sales volumes, particularly for the Citroën brand.
Proponent of Stellantis' India Expansion
Skeptic of Rapid Retail Growth
Local Sourcing and Investment
Proponent of Stellantis' India Expansion
Increasing local supplier value to ₹10,000 crore will significantly boost the Indian economy and strengthen the domestic automotive supply chain.
Skeptic of Rapid Retail Growth
While increased sourcing is positive, the rapid pace of expansion needs to be matched by consistent quality and reliability from these local suppliers.
Retail Network Expansion
Proponent of Stellantis' India Expansion
Adding 7-8 points of sale monthly, targeting 150 by March FY26, will enhance customer accessibility and drive sales growth for brands like Citroën.
Skeptic of Rapid Retail Growth
Aggressively opening new retail points at this speed could strain resources and potentially lead to underperformance if market demand doesn't keep pace.
Key facts
- Current Supplier Value
- ₹4,000 crore
- Target Supplier Value
- ₹10,000 crore by next fiscal
- Total Investment in India
- ₹11,000 crore
- Manufacturing Facilities
- 3 (Hosur, Ranjangaon, Thiruvallur)
- ICT Centers
- 3 (Hyderabad, Bengaluru, Pune)
- R&D Centers
- 2 (Chennai, Pune)
- Local Suppliers
- 500
- Current Citroën Sales
- Less than 500 cars/month
- Target Citroën Sales
- 2,000 cars/month
- Current Retail Touchpoints
- 130 (Citroën) + 78 (Jeep)
- Target Retail Touchpoints
- 150 by March FY26
- Vehicles Exported (Last Year)
- 10,000 fully built vehicles
- Engines/Powertrains Exported (Last Year)
- 300,000
Quotes
Shailesh Hazela
CEO and Managing Director, Stellantis India
“We aim to increase our direct and indirect supplier value to ₹10,000 crore by the next fiscal.”
thehindubusinessline.com
