A few days ago, I spoke to you about the launch of the new C3 Aircross in South Africa, a few months after the C3. The brand's presence in South Africa is important because Stellantis, which is aiming for strong growth in this region, wants to make Citroën its volume brand. In May 2024, work began on the construction of a new Stellantis assembly plant in the Coega Special Economic Zone in the Eastern Cape Province of South Africa. This ambitious project is a key step for the Stellantis Group and, in particular, for its Citroën brand, which is positioning itself as one of the main spearheads of this international development strategy.
The new CEO of Stellantis South Africa, Mike Whitfield, has confirmed that the first phase of production is expected to commence in early 2026, with an initial capacity of 50,000 units per year, the majority of which will be exported to the African continent. The choice of Coega as the production site demonstrates Stellantis' commitment to strengthening its presence in South Africa and beyond. The plant, estimated to cost 3 billion rand (€150 million), will initially focus on the production of a one-tonne pick-up, a popular vehicle in the region. The aim is to achieve local content of more than 30%, with a gradual increase forecast, underlining Stellantis' commitment to the local market.
The development of this plant is also a strong indicator of Stellantis' confidence in Citroën, which is destined to become the group's volume brand. As part of a strategy to develop Citroën's international presence, this project represents a major turning point. Whitfield clarified that Citroën will be the entry level brand for Stellantis, specifically targeting the segment of vehicles priced below 450,000 Rand (22,500 Euro), a segment that represents between 55% and 60% of new car sales in South Africa. This strategic orientation reflects not only Citroën's desire to increase its influence in emerging markets, but also the Group's ambition to consolidate its position as a leader in the global automotive sector. By integrating the Citroën range into this new phase of growth, Stellantis is reaffirming its volume target while seeking to increase its international market share.
A clear vision for international expansion and confidence in Citroën
Stellantis sees Citroën as an essential vector for its international ambitions, particularly in a South African market that is still developing. The choice to build a plant in South Africa, a country with a stable automotive policy, is a strategic decision aimed not only at supporting local sales but also at increasing exports. With a significant proportion of production destined for export, Stellantis intends to take advantage of the growth of the African market while consolidating its local operations. The new plant in Coega will play a central role in this strategy, creating jobs and contributing to regional economic development while strengthening Citroën's presence on the continent.
To support this expansion, Whitfield also plans to restructure the dealerships, reducing the number of points of sale while expanding their role to cover all Stellantis Group brands. This approach aims to improve the efficiency and visibility of the brands, with a focus on customer confidence and quality of service. Strengthening Citroën's presence in the low-cost segment is essential to achieving the ambitious sales targets set for the coming years. By targeting a sales volume of 2,000 units per month, Citroën is preparing to play a major role in Stellantis' global strategy, ensuring extensive coverage and a strong presence in international markets.
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