Stellantis (NYSE:STLA) is looking to India for manufacturing as the automaker seeks to shift away from its expensive home market in Europe.
CEO Carlos Tavares told reporters that plants in Europe are not cost effective, necessitating the examination of other locales for manufacturing bases. He indicated that India is among the nations being scrutinized for this shift.
“So far, Europe is unable to make affordable EVs. So the big opportunity for India would be to be able to sell EV compact cars at an affordable price, protecting profitability,” Tavares told Reuters. “There is a growing tension between China and the Western world. That is going to have a consequence in terms of business. The power that is best placed to leverage this opportunity is obviously India.”
He added that tariffs imposed on imports to the Indian market make it imperative to manufacture in India in order to sell to the Indian market.
The automaker’s joint venture in China recently filed for bankruptcy.