Stellantis' upcoming Citroën e-C3 nears completion

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【Summary】Stellantis CEO Carlos Tavares announced that the all-new Citroën e-C3, an affordable electric vehicle (BEV), will be launched in Europe in early 2024 to combat the "Chinese invasion" in the European market. Tavares emphasized the need for a competitive cost structure to make the e-C3 profitable and mentioned the importance of finding sourcing proposals. Stellantis reported significant growth in net revenues and net profit compared to H1 2022. The company also plans to complete a €1.

FutureCar Staff Aug 14, 2023 10:05 AM PT

Stellantis' upcoming Citroën e-C3 nears completion

The CEO of Stellantis, Carlos Tavares, has announced that the company's upcoming all-new BEV model will be a response to the "Chinese invasion" of the European market. During the automaker's first half results conference call, Tavares described the Citroën e-C3 as an affordable, fresh, and trendy option for middle-class drivers. The e-C3 is currently in the final stages of industrialization and is set to launch in Europe in early 2024.

Tavares emphasized that the e-C3, expected to be priced under €25k, is just the first step in Stellantis' strategy to combat Chinese competition in the European market. He stated, "We will fight with this kind of product, and we have more coming." While aiming to be affordable, Tavares also highlighted that the e-C3 will be profitable for Stellantis and is expected to gain a significant market position. The official unveiling of the e-C3 is planned for mid-October of this year.

Addressing the issue of Chinese competition during the Q&A segment of the conference call, Tavares discussed the need for a sourcing proposal that allows Stellantis to sell the e-C3. He outlined two possible approaches: finding breakthroughs in design to reduce costs or adopting a cost structure similar to that of Chinese competitors. Tavares made the assumption that there are no specific subsidies for Chinese car makers to gain a competitive advantage abroad.

Tavares further emphasized the importance of a competitive cost structure to ensure the profitability of the Citroën e-C3. He stated, "You have to have a very competitive cost structure, which means a significant LCC-based cost structure." He expressed confidence that Stellantis now has the right formula and is prepared for the arrival of Chinese competitors.

Stellantis reported net revenues of €98.4 billion for the first half of 2023, representing 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 increase, reaching €10.9 billion, up 37% from 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.