Stellantis is very strong in both North America and Europe, which allows it to generate very high margins, but the group is looking for sources of growth outside these two regions of the world where the automotive markets are mature. . One of these is undoubtedly South America, where the group is already a leader and where it has a strong appetite, as demonstrated by the record investment it has just announced.
Stellantis is the leader in the three main South American markets: Brazil, Argentina and Chile. Last year, the Group's total sales in the region exceeded 878,000 vehicles, with a market share of 23.5%. The company is the number one in Brazil with a market share of 31.4% and remains the number one in South America for light commercial vehicles with a market share of 28.6%. Fiat is the best-selling brand in Brazil and South America, and the Fiat Strada pick-up is the best-selling vehicle in the country and the region. South America plays a leading role in the "Third Engine", which includes South America, the Middle East and Africa, China, India and Asia-Pacific, and is a key contributor to Stellantis' sales growth outside North America and Europe.
However, the Group does not intend to stop there and is announcing a significant investment that will enable it to be better prepared to design, develop and produce advanced vehicles in the region, while expanding its activities. Stellantis is announcing a record investment plan for the South American region, totalling 5.6 billion euros between 2025 and 2030, the largest investment in the history of the Brazilian and South American automotive sector. The planned investments will support the launch of more than 40 new products during this period, as well as the development of new bio-hybrid technologies, innovative decarbonisation technologies within the automotive supply chain and new commercial opportunities.
This investment strengthens Stellantis' leadership in the region, consolidates the development of the local industry and accelerates the achievement of the long-term strategic plan Dare Forward 2030, as the region maintains its leadership in providing clean, safe and affordable mobility solutions in Brazil and South America.
Carlos Tavares, CEO of Stellantis, said: "This announcement reinforces our confidence and commitment to the future of the South American automotive industry, and is in response to the favourable economic context that prevails there. As an important part of our "third engine" growth strategy, South America will play a key role in accelerating the decarbonisation of the mobility sector, together with our people, our logistics network and our partners. I would like to thank each and every member of the team who has contributed to the development and implementation of our investment strategy, so that together we can achieve our goal of carbon neutrality, the highest in the industry. "
New propulsion systems: Focus on bio-hybrid technologies
One of the beneficiaries of this investment is the cutting-edge Bio-Hybrid technology, which combines electrification and hybrid engines powered by biofuels (ethanol) at three different levels. The Stellantis site in Betim, Brazil, is the company's global centre of expertise for bio-hybrid technology, continuing its legacy of innovation. Under the aegis of the FIAT brand, Stellantis was the first manufacturer to develop and launch an engine powered by 100% ethanol biofuel. In the future, the region will also produce a battery electric vehicle.
The production of the first vehicles equipped with bio-hybrid technology is flexible and can be integrated into different models manufactured by Stellantis. It is compatible with all the company's production lines in the region. New hybrid and electric technologies are expected to strengthen Brazilian engineering and local industry. The Bio-Hybrid technology is based on three hybrid powertrains that will be gradually produced and introduced to the market. These new technologies include bio-hybrid powertrains, bio-hybrid electrified dual-clutch transmissions (e-DCT), bio-hybrid plug-in models and BEVs (100% electric). New hybrid technologies are expected to be launched by the end of 2024.
This huge new investment demonstrates Stellantis' commitment to the development of South America and its intention to consolidate its leadership with the launch of 40 new products and the implementation of bio-hybrid technology, which will make it the only group to offer this technology in the countries of the region. Strong in Europe and North America, Stellantis is looking for growth drivers to achieve its Dare Forward 2030 objectives. The investment in South America makes it one of the main pillars of the group's expected growth by the end of the decade.