Automotive giant Stellantis has completed the process of gaining full control over its manufacturing joint venture (JV) in India. This move is part of the company's Fastlane 2030 strategy, aimed at transforming India into a larger global export hub.
Stellantis acquired the remaining stake in Stellantis India Automobile Private Ltd (SIAPL) from the JV partner, CK Birla group. This grants Stellantis full ownership of the facility in Tamil Nadu (Tiruvallur), where Citroën products are manufactured.
A senior company executive told Business Standard that production capacity at the Tiruvallur facility is planned to nearly triple. If production was around 18,000 units in 2026, it is expected to reach approximately 50,000 units by 2027.
The company also anticipates that upcoming Indian Free Trade Agreements (FTAs) will enhance the competitiveness of exports from the country. Additional control over manufacturing operations may facilitate faster adoption and localization of new models for both Indian and global markets.
Planned Production Growth
Shailesh Hazela, CEO and MD of Stellantis India, stated: "Today we produce 18,000 units annually. Next year, we plan to produce around 50,000 vehicles, including domestic demand and exports."
Stellantis did not disclose the amount paid to CK Birla group for the acquisition. This deal marks a significant milestone in Stellantis's history in India and confirms the company's confidence in the country's long-term growth potential.
The transaction, financed through Foreign Direct Investment (FDI), strengthens Stellantis's ability for deeper operational integration, accelerated decision-making, and greater market flexibility, which remains a central element of its global growth strategy.
History of Collaboration and Investments
The JV partnership dates back to 2017, when Stellantis and CK Birla group joined forces to create a long-term partnership in manufacturing and mobility in India. Over the years, this collaboration has laid a solid foundation for Stellantis's next phase of development in India.
Since the start of assembly operations in 2021, the Stellantis facility in Tiruvallur has become a key element of the company's growth strategy in India. This plant produces Citroën C3, ë-C3, C3 Aircross, and Basalt models, achieving a localization level exceeding 95 percent.
More broadly, Stellantis has invested over one billion euros in India to support its long-term ambitions, including product development, localization, and capacity expansion.
Hazela noted that "India will play an important role in manufacturing combined with engineering. This gives us a competitive advantage, and we as a company recognize that we need it. And I think that with government intervention on FTA matters, it will be very beneficial for all manufacturers with such a strategy."
The Tiruvallur facility benefits from a strong ecosystem of suppliers and logistics while helping to strengthen Tamil Nadu's position as a leading automotive manufacturing hub.
Employment and Export Prospects
The projected growth to 50,000 units annually by 2027 is expected to create significant employment opportunities, as the direct number of employees is forecast to double compared to the 610 employees in 2026. Furthermore, this will ensure substantial indirect employment within the supplier and logistics ecosystem.
Tiruvallur is also expanding its global footprint, serving customers in eight export markets across four continents. The company continues to reinforce its reputation for quality, operational excellence, and sustainable manufacturing.
Hazela emphasized: "India remains a key pillar of Stellantis's growth strategy. By investing nearly 11,000 crore rupees in the country to build a strong manufacturing, engineering, and export ecosystem, we continue to see significant opportunities ahead. This milestone will enable greater integration and improve our ability to respond faster to customer and market needs."
He added that the company's exports will grow in terms of both the number of countries and the number of models.
"Looking ahead, we aim to drive growth through investments in new products, expansion of production capacity, increased export competitiveness, and deeper localization. India plays an increasingly vital role in Stellantis's global network. We see significant potential for further scaling of our operations and contribution to the country's industrial growth," he concluded.
Stellantis reported that the 'smart car' platform, developed and invested in India, is used for numerous models produced across India, Latin America, Europe, the Middle East, and Africa.
India is a strategic market for Stellantis, serving as a crucial node for manufacturing, engineering, and export. Full ownership of SIAPL ensures a streamlined management structure, greater operational flexibility, and closer alignment with the company's global priorities. As one of the fastest-growing automotive markets globally, India offers substantial opportunities for expansion. This milestone allows Stellantis to accelerate growth, strengthen exports, deepen local investment, and create long-term value for customers, employees, partners, and communities.