By the end of CY2023, there were 58 dealers, and by CY2024 end this number had increased to 80. The company says that it has added 30 more in the last two monthsMumbai: As US-based Tesla and Vietnam’s VinFast ramp up their India EV push, Amsterdam-headquartered Stellantis is gearing up to introduce Chinese EV brand Leapmotor to the market. The company, which currently retails Jeep and Citroen in India, confirmed its strategic move in April this year.
Explaining the group’s strategy, Shailesh Hazela, CEO and Managing Director of Stellantis India, told ETAuto, “The first Leapmotor product will enter the markets next fiscal. The offering will be in the B-segment range, or maybe entry C, as these are the segments where Leapmotor has a strong presence and has built innovation around its products. We are still evaluating which specific model to launch.”
Prime Minister Modi’s recent visit to China, where he held bilateral talks with President Xi Jinping, is being viewed as a positive signal amid otherwise strained relations between the two countries.
Globally, Stellantis oversees 14 brands, including Chrysler, Peugeot, Jeep, Fiat, and Maserati. In 2023, it acquired a 21 per cent stake in Leapmotor for $1.6 billion and formed Leapmotor International, a joint venture in which it holds 51 per cent. Leapmotor sold just over 300,000 cars last year, less than a tenth of BYD’s volume, but turned profitable in the fourth quarter, a year ahead of schedule.
With Leapmotor in India, Stellantis aims to redefine itself and target premium EV consumers, who are aspirational and tech-savvy buyers, distinct from the segments addressed by its existing brands. “This is the differentiation we need to maintain because we cannot cannibalize our own brand with a product,” Hazela added.
For Stellantis, the world’s fourth-largest automaker by sales, the challenge will be to balance the introduction of a new brand in India at a time when its home brands are already struggling in the country.
On distribution, the European automaker is expected to leverage its existing dealer network, where Jeep and Citroen models are sold. Industry observers note that the move could help dealers, who are struggling with low volumes, attract customer footfall and generate renewed interest through Leapmotor’s EV portfolio.
“Today with Jeep and Citroen, we have converted 50 per cent of our dealers to Stellantis Brand Houses (SBH), which sell both Jeep and Citroen,” Hazela said.
“We don’t require a separate electric showroom for sure, because all our showrooms and service facilities are equipped to handle both ICE and electric vehicles,” he added. Hazela, who previously served as Vice-President – Global Purchasing and Supply Chain for India and the Asia Pacific region at Stellantis, took over the current role from Aditya Jairaj in mid-July last year.
Brand sustainability
As an organisation, Stellantis is “able to sustain itself” in India. However, Hazela refrained from commenting on both the individual brands’ profitability.
To make a fresh start, the automaker now aims for Citroen and Jeep to remain accessible with its EV and hybrid-ready platforms, stay within the right price band, and sustain their presence in the Indian market. Hazela said, “Once we remain in mind of the consumers, we will be in consideration.”
For this, Hazela said Citroen aims to achieve 2,000 unit sales a month, while for Jeep it wants to ride on the recent price cut owing to the new GST rate to attract consumers.
Kumar Priyesh, Director of Automotive Brands at Stellantis India added that the plan is to expand its dealer network from 110 to 150 over the next six months through a hub-and-spoke model, with outlets ranging from sales-only to combined sales and service facilities.
ETAuto learns that these hub and spoke models will need a frugal investment of around ₹1-2 lakh.
By the end of CY2023, there were 58 dealers, and by CY2024 end this number had increased to 80. The company says that it has added 30 more in the last two months
On Friday, Citroen launched the Basalt X range under its 2.0 strategy, introducing ‘Cara’, billed as India’s first intelligent in-car companion. Prices start at ₹7.95 lakh, while the fully loaded Basalt X is priced at ₹12.89 lakh (introductory, ex-showroom).
Customer deliveries will begin this festive season. With the new model, the company plans to double its market share in the next three months, which currently hovers below 1 per cent.
The Basalt X will compete with models such as the Hyundai Creta, Kia Seltos, Maruti Grand Vitara and the recently unveiled Victoris.
India success story?
Stellantis was formed in January 2021 through the merger of FCA (Fiat Chrysler Automobiles) and France’s PSA Group. In India, Jeep took over from the Fiat brand, while Citroen replaced Peugeot.
The latter entered the domestic market with the C5 Aircross SUV in April 2021, while Jeep made its debut earlier with the Compass, launched in August 2017.
Since then, however, Stellantis has struggled to capture consumer interest with both brands, hindered by a lack of urgency, localisation and network gaps. Hazela acknowledged that the company entered India knowing it would be a “tough” market, and that it was “not going to be a cakewalk.”
Stellantis has invested around ₹11,000 crore in India since it entered the market. Globally, the country does not stand anywhere in at least the top 15 markets for Stellantis.
Sales volumes reflect this challenge. In FY25, Jeep recorded fewer than 4,000 wholesales in the domestic market, while Citroen despatched just about 6,516 units. With product sales under pressure, the company has increasingly relied on India’s strengths, a young talent pool, engineering capability, and export competitiveness, to sustain its operations.
The group operates three manufacturing plants in India–Ranjangaon near Pune, Hosur in Tamil Nadu, and Thiruvallur on the outskirts of Chennai. It also runs an ICT hub in Hyderabad, a software centre in Bengaluru, and two R&D centres in Pune and Chennai, employing close to 5,000 people across the country.
Unlike most other foreign automakers in India, Stellantis follows a joint venture (JV)-based business model for manufacturing. Jeep vehicles are manufactured at the Fiat–Tata Motors JV plant in Ranjangaon, giving the company a localized cost advantage.
On the PSA side, the French automaker re-entered India by signing an agreement with the CK Birla Group. The erstwhile CK Birla car plant, earlier used for assembling Mitsubishi models, is now used for Citroen.
Stellantis’ transmission JV plant in Hosur was set up with refurbished machinery relocated from outside India. Additionally, the company exports powertrains from India, which contribute positively to its profitability in the market.
“So, India is not just seen as a domestic market. It is recognised for its strengths in engineering, design, suppliers, and manufacturing. These are the strengths that Stellantis continues to draw from India,” said Hazela.
He emphasised that the global management has given the local team full freedom to take decisions on the product strategy for India. It remains to be seen whether the Citroen 2.0 strategy and Leapmotor’s debut can help Stellantis establish a strong foothold in India’s competitive and fast-evolving market.
