Stellantis India has acquired the remaining equity stake held by Hindustan Motor Finance Corporation Ltd (HMFCL), a CK Birla Group company, in Stellantis Automobiles India Pvt Ltd (SAIPL), giving the automaker full ownership of the manufacturing joint venture and its vehicle assembly facility in Thiruvallur, Tamil Nadu.

The transaction, funded through foreign direct investment (FDI), concludes the partnership between Stellantis and the CK Birla Group that was established in 2017 and brought the French carmaker Citroen to the Indian market. Stellantis did not disclose the size of the stake acquired or the value of the transaction.

Full ownership of SAIPL is expected to simplify the governance structure, enable greater operational integration, accelerate decision-making and provide Stellantis with greater flexibility in India.

Vehicle assembly operations at the Thiruvallur facility began in 2021. The plant currently manufactures four Citroen models - the C3, eC3, C3 Aircross and Basalt - with localisation exceeding 95 per cent. The facility serves the Indian market and export markets, with completely built units (CBUs) shipped to eight markets across four continents.

As part of its next phase of operations, Stellantis plans to increase annual production at Thiruvallur by more than 160 per cent, from 16,000 units in 2026 to more than 43,000 units by 2028. The target covers vehicles produced for both domestic and export markets and will be supported by new product investments, increased manufacturing capacity and efforts to increase exports.

The company also expects the plant's direct workforce to more than double from its current level of 610 employees. The expansion is also expected to generate additional indirect employment across the supplier and logistics ecosystem.

Citroen vehicles are manufactured at the Thiruvallur facility, while Jeep vehicles are produced at Stellantis' Ranjangaon plant near Pune. The sales figures provide context for the planned increase in production capacity in India, with the company relying on domestic demand, exports or a combination of both to support its 2028 production target.

Stellantis said it has invested more than EUR 1 billion, or close to Rs. 110 billion, in India across manufacturing, product development, localisation and capability building. The company operates the Citroen and Jeep brands in India and has manufacturing, engineering and export operations in the country.

Shailesh Hazela, CEO and Managing Director of Stellantis India, said India remains a key pillar of the company's growth strategy and that the investment has helped establish a manufacturing, engineering and export ecosystem.

"India remains a key pillar of Stellantis's growth strategy. Having invested close to Rs. 110 billion in the country to build a strong manufacturing, engineering and export ecosystem, we continue to see significant opportunities ahead. This milestone will enable greater integration and enhance our ability to respond more quickly to customer and market needs," Hazela said.

Going forward, Stellantis plans to focus on new product investments, increased manufacturing capacity, export competitiveness and deeper localisation as it expands its operations in India. The company has not announced specific new models or launch timelines as part of these plans.

Full ownership of SAIPL will result in Stellantis having direct ownership of the Thiruvallur manufacturing facility, while the company plans to increase production capacity and expand its manufacturing, engineering and export operations in India.