'Affordable EVs for Europe can come from India'

Says Chief Executive Officer of Stellantis Carlos Tavares. He tells Ketan Thakkar that the India business is already profitable and insulated from any slowdown as their breakeven point is below 40 percent of revenues.

"With EVs it is not a technology problem, but more of an affordability problem," says Carlos Tavares, the global CEO of Stellantis, the world's fifth largest automaker. The company is planning to address that challenge for Europe by exporting cars from India - which it considers as amongst the best cost bases in the world. Speaking to a select set of Indian media Tavares said, "So far Europe is unable to make affordable EVs. Hence there is a big opportunity for India to be able to sell EV compact cars at an affordable price, protecting profitability. Because the country has such a cost competitive supplier base, it is possible."

First visit to India In his first visit to the country after taking charge of Stellantis, Tavares spent over 48 hours reviewing the Indian operation and gauging the cost and quality of its first compact car from Citroen - the C3 out of its Thiruvallur plant on the outskirts of Chennai.

He said that at present, the conventional ICE hatchback in Europe costs between 15,000 to 20,000 euros and the EV is available at almost 40-50 percent premium at 30,000 euros. "If EVs are bought only by a few wealthy people, then the volumes will be limited and it will have a marginal impact on the environment," he said. "How to make EVs affordable to the middle-class is the biggest challenge. Only affordability can create scale, and then only can one have a significant impact on the environment," he opined. Exporting from places like India could be an alternative, the company is exploring.