Stellantis' latest Citroën e-C3 nears completion.

author: FutureCar Staff    

Stellantis CEO Carlos Tavares has announced that the automaker's new battery electric vehicle (BEV) model will be a direct response to the "Chinese invasion" of the European market. During the company's first half results conference call, Tavares revealed that the Citroën e-C3 will be the first offering targeting middle-class drivers, emphasizing its affordability, freshness, and trendiness. The e-C3 is currently in the final stages of industrialization and is set to launch in Europe in early 2024.

Tavares stated that the e-C3, expected to be priced below €25,000, is just the beginning of Stellantis' strategy to combat the Chinese competition in the European market. He expressed confidence that this type of product will play a significant role in the company's future and profitability. The e-C3 is scheduled to be unveiled in mid-October of this year.

During the Q&A segment of the conference call, Tavares addressed the issue of Chinese competition and highlighted the need for a sourcing proposal that enables the successful sale of the e-C3. He outlined two potential approaches: 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 abroad.

Tavares emphasized the importance of a competitive cost structure to ensure the profitability of the Citroën e-C3. He stated that a significant low-cost country (LCC)-based cost structure is necessary and expressed confidence that Stellantis has found the right formula. He concluded by saying that the company is well-prepared for the arrival of Chinese competitors.

Stellantis also reported strong financial results for the first half of 2023. Net revenues reached €98.4 billion, a 12% increase compared to the same period in 2022, primarily driven by higher shipments. The net profit for the period was €10.9 billion, representing 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 expects to complete its announced €1.5 billion share buyback program before the end of 2023.

FutureCar Staff