The complete takeover of Stellantis Automobiles India Private Limited (SAIPL) by Stellantis is in view of the acquisition of the residual shares owned by the CK Birla Group company, Hindustan Motor Finance Corporation. This makes Stellantis have full ownership of its automobile manufacturing plant in Thiruvallur, Tamil Nadu.
Changes with Full Ownership
With the completion of the deal, the partnership formed by Stellantis and the CK Birla Group in 2017 comes to an end. Stellantis claims that the decision will make decisions easier for them and enable them to incorporate their manufacturing facilities in India into their broader global strategy.
Stellantis’ Thiruvallur manufacturing plant makes four models of Citroen vehicles: C3, e-C3, C3 Aircross, and Basalt. Furthermore, the factory exports its vehicles to eight countries on four continents. In addition to this, the level of localization of the factory is more than 95 percent.
Production is Due to Go Up Heavily
A much more significant issue is that of Stellantis’ plans to heavily ramp up its production at the Tamil Nadu factory. According to company reports, production is due to be increased from 18,000 units per year in 2026 to over 50,000 units per year in 2027.
As a result, there will also be more employment opportunities. At present, the factory employs about 610 workers directly on its shop floor.
Importance Of India To Stellantis
Stellantis has already made an investment of around ₹11,000 crore in India in manufacturing and localization of their vehicles among others. This company has been putting India into an important position as an essential manufacturing and export center in its global business setup.
This company has also shown that it will use India in its product and export strategy.
What This Means
This acquisition is not just a case of restructuring, but goes further by allowing Stellantis increased flexibility when it comes to production planning and investments in India. The plans for an increase in production capacity also indicate that Thiruvallur could play a key role in Stellantis’ India and export strategy.
The fact that Citroen has already established itself there, making several models in the facility and intends to grow in India further means that the factory is going to be crucial in its next phase of growth.