The carmaker wants to increase localisation levels in its vehicles as it looks to double its revenue by 2030 and maintain double-digit profit margins. However, despite plans to launch newer models, cracking the Indian market won't be easy, say experts
Jeep has managed to bring some reprieve for the global automaker, although it is a long way from the top
They are now a mighty force. And that could make all the difference, after all the years. For Stellantis—the automotive giant formed in 2021 after a merger between the Italian American conglomerate Fiat Chrysler Automobiles and the French PSA Group—India isn’t unchartered territory. Fiat first became known to Indians in 1964, when the Mumbai-based Premier Automobiles Limited (owned by Walchand Group), joined hands with Fiat Automobiles and obtained licence to manufacture the Premier Padmini, known globally as Fiat 1100.
The Premier Padmini was a phenomenal success and once the mainstay of taxis in Mumbai. In the late 1990s, Fiat came directly to Indian shores and joined hands with Tata Motors to set up Fiat Group Automobiles India Private Limited in Pune, as India opened its economy to welcome foreign automakers. By 2012, the Fiat Chrysler group decided to go all alone in India, before deciding to shut the Fiat brand altogether in the country in 2019.
In the meantime, however, the Fiat Chrysler group, through its arm, FCA India Automobiles Private Limited (FCAIPL), turned its attention to the Jeep brand, as India’s SUV race began to heat up. Today, Jeep has managed to bring some reprieve for the global automaker, although it is a long way from the top. Stellantis now operates in India with two brands, Jeep and Citroen. In April, Jeep sold 946 units, a little over 200 units more than what it sold last April.
The combined entity, which comprises FIAPL and PCA Automobiles that manufactures the Citroen range, has a market share of less than 0.5 percent in the country. India’s domestic market is led by Maruti Suzuki, followed by Hyundai, Tata Motors, and Mahindra. Together, they control nearly 75 percent of the Indian market.
Despite its paltry share, the Netherlands-headquartered Stellantis has laid out some ambitious plans for India. “India is the core of this (Asia-Pacific) region, and I must say that I'm very excited about what has been presented to me today, both in terms of potential and about the things that we are actually executing right now,” Carlos Tavares, chief executive officer of Stellantis said in a select media interaction in Chennai last week. “I think it's a very concrete contribution that we are getting from this region. We are not at all in a defensive mode.”