Automotive giant Stellantis, parent company of Citroën, has announced its acquisition of the remaining stake held by Hindustan Motor Finance Corporation Ltd (HMFCL), a CK Birla Group company, in Stellantis Automobiles India Private Limited (SAIPL). This transaction grants Stellantis full ownership of SAIPL and its manufacturing operations located in Thiruvallur, Tamil Nadu.
The move is set to empower Stellantis to ramp up its production capabilities significantly. The company plans to boost annual output from 16,000 units in 2026 to more than 43,000 units by 2028. This expansion underscores India's growing importance as a strategic hub for Stellantis's global manufacturing, engineering, and export endeavors.
Despite this ambitious expansion, the Citroën brand, which entered the Indian market in 2021, has faced challenges, currently holding only a 0.2% share of India's 4.7 million passenger vehicle market.
Full ownership of the Thiruvallur plant offers Stellantis a simplified governance structure, enhanced operational flexibility, and closer alignment with its global strategic priorities. The company has invested over 1 billion euros in India to support its long-term growth ambitions, covering manufacturing, product development, localization, and capability building.
Shailesh Hazela, CEO and Managing Director of Stellantis India, emphasized the company's commitment. "India remains a key pillar of Stellantis' 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," Hazela stated. He added that this milestone will enable greater integration and quicker responses to market demands, reinforcing India's role within Stellantis's global network.
The planned production ramp-up is also expected to generate substantial employment opportunities. The direct workforce at the plant is projected to more than double from 610 employees in 2026, alongside the creation of indirect jobs across the supplier and logistics ecosystem. The Thiruvallur facility, which manufactures models like the Citroën C3, ë-C3, C3 Aircross, and Basalt with over 95% localization, already serves as an export hub for eight markets across four continents.