Stellantis, the automaker headquartered in Hoofddorp, Netherlands (and the owner of Chrysler), has taken full ownership of its vehicle plant in Tiruvallur, in southern India, by buying out the remaining stake held by its India joint-venture partner. The companies did not disclose the price or the size of the stake.
The seller was Hindustan Motor Finance Corporation, part of India’s CK Birla Group, a conglomerate headquartered in New Delhi, in northern India, in their joint venture, Stellantis Automobiles India Pvt Ltd. According to The Hindu BusinessLine, Stellantis and the CK Birla Group began the partnership in 2017 with Stellantis already the majority shareholder, so today’s purchase gives Stellantis full ownership rather than a change in control.
Shailesh Hazela, Chief Executive Officer and Managing Director of Stellantis India, stated that full ownership “would provide greater flexibility and agility in decision-making” and let the company “respond faster to market and customer requirements.” Both companies agreed to keep the price and the stake size confidential, he said.
The Tiruvallur plant began vehicle assembly in 2021 and builds the Citroën C3, ë-C3, C3 Aircross and Basalt models, with more than 95% of parts sourced locally, Hazela said. Stellantis has invested more than €1 billion in India across manufacturing, product development, local sourcing and capability building, he said.
The company plans to raise production at the plant from 18,000 vehicles this year to more than 50,000 a year by 2027, and to more than double its direct workforce there from around 600 to over 1,000. The export share of that output is also set to grow: 30% of production currently goes abroad, Hazela said, a figure Stellantis expects to rise to 60% by 2027, with vehicles shipped to South Africa, Egypt, Indonesia, Nepal, Bhutan and Sri Lanka. Stellantis is also working with the Tamil Nadu government on additional investment tied to the expansion, which Hazela said will be announced separately.
Stellantis also runs an engine and transmission plant in Hosur, also in southern India, with capacity for around 250,000 engines and 350,000 transmissions a year, Hazela said. That plant supplies the Tiruvallur factory and also exports to Europe, the Middle East and Africa.
For American executives, the move illustrates a pattern beyond Stellantis: a global automaker consolidating ownership of its India operations while shifting their focus from the domestic market toward exports for other regions.
