Stellantis Takes Full Ownership of Indian Manufacturing Joint Venture

Multinational automotive group Stellantis has acquired the remaining equity stake held by the CK Birla Group firm Hindustan Motor Finance Corporation Ltd in Stellantis Automobiles India Pvt Ltd, securing 100 percent ownership of the joint venture and its vehicle assembly plant in Thiruvallur, Tamil Nadu. The transaction, executed through foreign direct investment, concludes a partnership established in 2017 that originally brought the French carmaker Citroen into the Indian market.

The initial alliance between French automaker PSA and CK Birla was formalized via manufacturing agreements and the sale of the Ambassador brand. Wholly owned subsidiaries allow unilateral capital investment and seamless alignment with global export and product roadmaps compared to joint ventures.

Citroën sold domestic units in India averaging under one thousand units per month. India's passenger vehicle export market is dominated by Maruti Suzuki and Hyundai Motor India.

Financial terms of the transaction and the exact size of the acquired stake were not disclosed by the company. The manufacturing facility at Thiruvallur began operations in 2021 and currently produces four Citroen nameplates, namely the C3, the eC3 electric model, the Aircross, and the Basalt, achieving a localized supply chain exceeding 95 percent.

Following the consolidation of ownership, Stellantis outlined plans to elevate annual production at the Tamil Nadu plant by over 160 percent. Output is projected to climb from 16,000 units in 2026 to upwards of 43,000 units annually by 2028. Leadership indicated that the manufacturing expansion will more than double the facility's direct shopfloor workforce from its current count of 610 employees while creating indirect employment opportunities across local supplier and logistics networks.

Shailesh Hazela, CEO and managing director of Stellantis India, said, "India remains a key pillar of Stellantis's growth strategy. Having invested close to Rs 11,000 crore 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 enhance our ability to respond more quickly to customer and market needs."

Beyond domestic sales, the Thiruvallur facility operates as a regional export hub, shipping completely built units to eight markets across four continents. According to corporate disclosures reported by trade media, approximately 60 percent of the expanded output from the upcoming production ramp-up is projected for international export destinations, with the remaining 40 percent allocated to domestic buyers in India.

Stellantis confirmed that taking sole control of the operational entity provides a simplified corporate governance structure and greater operational flexibility. The move aligns the Indian unit more closely with global corporate priorities, allowing faster decision-making across product investments and localized engineering initiatives.

The consolidation phase precedes broader capital deployment toward new product lines and export competitiveness. Stellantis has maintained cumulative investments approaching Rs 11,000 crore in its Indian manufacturing, research, and development infrastructure, which supports both the Citroen and Jeep brands in the country.

Operations at the Thiruvallur plant will continue under the sole management of Stellantis as the company moves toward its 2028 output targets, with further updates expected regarding supplier contracts and specific product deployment timelines.