Stellantis considers potential partnership for Chinese electric vehicles

author: FutureCar Staff    

Stellantis, the owner of Jeep and Ram, is considering a partnership with a Chinese EV maker, taking inspiration from Volkswagen. This move aims to strengthen Stellantis' brand in the Chinese market by potentially utilizing an EV platform from China.

According to Bloomberg, sources familiar with the matter revealed that Stellantis is exploring alliances in China to expand its brand in the world's largest EV market. One potential partner being considered is Zhejiang Leapmotor Technologies (Leapmotor). This news comes after recent reports of Volkswagen negotiating with Leapmotor to acquire a certain generation of its EV platform for its Jetta brand. However, the partnership between Volkswagen and Leapmotor is expected to be more similar to the Audi-SAIC tie-up rather than the XPeng deal.

Volkswagen recently invested $700 million in XPeng for a 4.99% stake and will be using XPeng's Edward platform for the launch of two new electric models. Audi, on the other hand, confirmed a partnership with Chinese state-owned SAIC to accelerate EV development in the region. Now, Stellantis is considering various options, including investing in a Chinese EV maker or establishing a business partnership to expand its brand in the Chinese market.

Stellantis CEO Carlos Tavares has been promoting an "asset-light" strategy after closing its only Jeep factory in China last year. This strategy aims to counter the declining market share of rivals like Volkswagen and GM by focusing on partnerships and collaborations. Stellantis already has a joint venture with Dongfeng Motor Group in China, selling Peugeot and Citroen cars. However, the company may be looking to further expand its presence in the Chinese market through a new partnership.

China is the largest EV market globally, with over 535,000 battery electric vehicles sold in June alone, according to data from the China Association of Automobile Manufacturers (CAAM). Between January and June, a total of 2.55 million EVs were sold in the region. Leading global automakers like Volkswagen have heavily relied on China for a significant portion of their revenue. As domestic EV makers like BYD and Tesla continue to gain market share, automakers such as VW, Toyota, GM, and now Stellantis are recognizing the urgency to keep up. Partnering with local automakers and suppliers can help accelerate EV development in the region and cater to the unique needs of the Chinese market.

FutureCar Staff