Final stages of Stellantis' new Citroën e-C3

author: FutureCar Staff    

Stellantis CEO Carlos Tavares has revealed that the company's new battery electric vehicle (BEV) model is aimed at combating the "Chinese invasion" of the European market. During the automaker's first half results conference call, Tavares highlighted the Citroën e-C3 as an affordable and trendy option for middle-class drivers. The e-C3 is nearing the end of its industrialization phase and is set to launch in Europe in early 2024.

The e-C3, expected to be priced under €25k, is the first step in Stellantis' strategy to counter the growing presence of Chinese car manufacturers in the European market. Tavares emphasized that the company has more products in the pipeline to compete in this space. He also mentioned that while the e-C3 will be affordable, it will also be profitable for Stellantis and is expected to capture a significant market share. The official unveiling of the e-C3 is scheduled for mid-October of this year.

During the Q&A segment of the call, Tavares addressed the issue of Chinese competition and emphasized the need to develop a sourcing proposal that enables the sale of the e-C3. He outlined two approaches to achieve this goal: finding breakthroughs in design to reduce costs or adopting a cost structure similar to that of Chinese competitors. Tavares assumed that Chinese car makers do not receive specific subsidies to gain a competitive advantage in foreign markets.

He further explained that in order to make the Citroën e-C3 profitable, it is crucial to have a highly competitive cost structure, particularly one based on low-cost country sourcing. Tavares expressed confidence that Stellantis has found the right formula and is well-prepared for the arrival of Chinese competitors in the European market.

In terms of financial performance, Stellantis reported net revenues of €98.4 billion for the first half of 2023, marking a 12% increase compared to the same period in 2022. This growth is attributed to higher shipments. The company's net profit also saw a significant rise, reaching €10.9 billion, a 37% increase compared to H1 2022.

In addition to its revenue growth, Stellantis repurchased €0.7 billion in shares during the first half of 2023. The company anticipates completing its announced €1.5 billion share buyback program before the end of 2023.

FutureCar Staff