Stellantis, the global automotive group operating the Jeep and Citroën brands in India, has set an optimistic outlook for its domestic operations, projecting significant growth in passenger vehicle sales and component exports.

Domestic Market Projections

The company anticipates the Indian passenger vehicle industry will experience a growth rate exceeding 5% this year. This positive forecast is largely attributed to the introduction of the GST 2.0 reforms.

According to a senior executive, the tax revisions spurred a notable resurgence in consumer demand, particularly benefiting the small car segment. This policy change reportedly accelerated the shift of buyers from two-wheelers to four-wheelers, with demand spiking in the final days of September following the rollout and maintaining momentum through October.

The company itself saw direct benefits from the tax adjustments, with price reductions on several models. Certain Citroën vehicles under the ₹13 lakh price point and many Jeep models became approximately 10% cheaper. This, combined with festive demand, contributed to Stellantis selling 1,426 units in October.

Four-Fold Export Goal

Stellantis India has set an ambitious target to significantly boost its component exports. The company plans a four-fold jump in its export business, aiming to scale up component exports from the current ₹4,000 crore to ₹10,000 crore in the coming year.

Driving this component supply push are the company’s manufacturing facilities, including the Hosur powertrain and gearbox plant and the Bengaluru unit. These facilities are critical to Stellantis’s global supply chain, producing engines and gearboxes that are primarily destined for global operations.

Strategic Expansion and Investment

Looking ahead, Stellantis India intends to strengthen its local presence by expanding its retail footprint, launching new products, and increasing overall exports.

The company has invested a total of ₹11,000 crore in its India business to date. Its current vehicle portfolio includes a range of models based on its Smart Car architecture, such as the Citroën C3, EC3, C3 Aircross, Basalt, and Basalt X coupé-SUVs, alongside the larger C5 Aircross.