Stellantis Expands India Manufacturing Strategy With New Jeep Export Program

Stellantis plans to develop and manufacture a new Jeep vehicle in India through its joint venture partnership with Tata Motors, reinforcing the company’s strategy to position India as a major low-cost manufacturing and export hub for future mobility programmes. The automaker is increasingly shifting its focus toward regional engineering ecosystems and collaborative manufacturing structures that can support global expansion while maintaining competitive production costs. The upcoming Jeep programme is expected to serve several international markets and strengthen India’s role in Stellantis’ broader electrification and smart mobility roadmap.

According to Grégoire Olivier, Head of Asia Pacific region at Stellantis, the India-developed Jeep vehicle will become one of five globally focused products being engineered in Asia through local partnerships and cost-efficient development systems. He stated that India offers a highly competitive platform for future vehicle programmes because of its engineering talent, supplier ecosystem and manufacturing capabilities. The company believes that leveraging India’s industrial ecosystem can improve global competitiveness while enabling faster development cycles and scalable export operations across multiple international regions.

Stellantis is now repositioning India beyond its traditional role as a domestic sales market for brands such as Jeep and Citroën. The company increasingly views the country as an export-oriented product development base capable of supporting international vehicle programmes at significantly lower operational costs compared to manufacturing environments in Europe or North America. This strategic shift is intended to help Stellantis optimize investments, improve operational flexibility and create globally viable products tailored for emerging and cost-sensitive markets.

The partnership with Tata Motors remains central to this strategy because it provides access to extensive local engineering resources, established supply chain networks and cost structures that are difficult to replicate in higher-cost regions. During the Investor Day 2026 presentation, Stellantis CEO Antonio Filosa stated that the company is strengthening its product offering in India while supporting exports to APAC, the Middle East, Africa and South America through synergies in manufacturing, supply chain integration, technology development and product engineering collaboration.

Olivier explained that the India-developed Jeep programme would also help Stellantis maintain an “asset light” operational model while improving global competitiveness. He added that the company’s confidence in India’s role within the global EV and smart-car ecosystem continues to deepen. As an example, he highlighted the Citroën smart-car programme in India, which reflects the company’s ongoing focus on affordable and compact vehicles engineered locally for both domestic and export markets.

Stellantis plans to export India and China-developed vehicles to more than 50 countries globally over the coming years. The company estimates that the combined vehicle and model sales generated through these programmes could exceed €60 billion cumulatively within the next five years. This strategy forms part of a broader APAC expansion framework that relies heavily on partnerships and collaborative development rather than large standalone manufacturing investments.

A key pillar of Stellantis’ regional strategy is its relationship with Chinese EV manufacturer Leapmotor. Olivier described Leapmotor as one of the fastest-growing battery electric vehicle manufacturers in China with a highly competitive cost structure. The company reportedly sold approximately 600,000 battery electric vehicles in 2025, making it the sixth-largest BEV manufacturer globally. Stellantis currently owns nearly 20 percent of the Chinese EV maker and holds exclusive international sales rights through Leapmotor International, a joint venture in which Stellantis owns a 51 percent stake.

Stellantis aims to sell around 180,000 Leapmotor EVs internationally next year by leveraging China’s EV manufacturing cost advantages in regions where affordability remains a key market driver. Alongside its partnership with Leapmotor, Stellantis is also strengthening its collaboration with Dongfeng Motor Corporation. Through their DPCA joint venture in China, the companies plan to develop and manufacture two new Jeep models and two Peugeot models while also discussing another potential joint venture focused on EV production.

Projected Stellantis APAC Partnership Expansion Targets

Olivier stated that Stellantis plans to sell approximately 100,000 localised vehicles globally by 2028 through its Tata and Dongfeng partnerships, with production volumes expected to increase further over time. The company also expects to double its APAC business while maintaining an adjusted operating income margin between 4 and 6 percent. These targets underline the importance of strategic partnerships in supporting the automaker’s long-term regional growth ambitions.

Antonio Filosa, Chief Executive Officer and Executive Director for North America & American Brands at Stellantis, said the future automotive market will become increasingly fragmented across regions, technologies and customer preferences. According to him, this changing market structure is driving a major transformation in how the company manages operations and allocates investments across global markets.

Filosa explained that Stellantis believes the automotive industry is being reshaped by five major forces: regional fragmentation, rising Chinese competition, growing cost pressures, uneven electrification adoption and the increasing importance of technology and artificial intelligence. The company currently operates in India through Jeep and Citroën, both of which have faced challenges in scaling sales volumes within the country’s highly competitive and price-sensitive automotive market.

Stellantis believes that stronger regional operations and local partnerships could help the company adapt products faster to market requirements while improving cost efficiency and competitiveness. Filosa added that the company’s long-term “Fastlane 2030” roadmap will focus on six pillars including portfolio optimization, disciplined capital allocation for new technologies, stronger strategic partnerships, optimized manufacturing networks, disciplined execution and empowered regional operations.

Frequently Asked Questions

Why is Stellantis expanding Jeep manufacturing operations in India?
Stellantis is expanding Jeep manufacturing operations in India to strengthen its global export strategy and reduce production costs through local partnerships and engineering capabilities. The company believes India offers a competitive manufacturing ecosystem with strong supplier networks, engineering talent and scalable production infrastructure. Through its partnership with Tata Motors, Stellantis plans to use India as a major export and product development hub for future global mobility programmes. This strategy is also expected to improve operational efficiency, support electrification plans and increase competitiveness across multiple international markets.

What role does Tata Motors play in Stellantis’ India strategy?
Tata Motors plays a critical role in Stellantis’ India strategy by providing local engineering expertise, manufacturing support and supply chain integration capabilities. The partnership allows Stellantis to access lower-cost production systems and scalable industrial infrastructure that can support export-oriented vehicle programmes. Through this collaboration, Stellantis plans to manufacture new Jeep vehicles in India for several international markets. The partnership is also expected to support technology sharing, improve operational synergies and strengthen the company’s long-term growth strategy across APAC and other emerging global regions.

How does Stellantis plan to grow its EV business globally?
Stellantis plans to expand its EV business globally through partnerships with companies such as Leapmotor and Dongfeng Motor Corporation while leveraging cost-efficient manufacturing ecosystems in India and China. The company aims to increase international EV sales by combining localised vehicle development with strategic export programmes. Stellantis expects to benefit from competitive EV cost structures, advanced technology collaboration and regional manufacturing synergies. Its broader Fastlane 2030 strategy also focuses on electrification, artificial intelligence integration, optimized production networks and stronger partnerships to support long-term global automotive growth.