Citroën owner Stellantis take full control of Tamil Nadu plant

Stellantis India on Monday said it has acquired the remaining stake held by Hindustan Motor Finance Corporation Ltd (HMFCL), a CK Birla Group company, in Stellantis Automobiles India Private Limited (SAIPL).

Stellantis now holds full ownership of SAIPL and its manufacturing operations in Thiruvallur, Tamil Nadu.

With the acquisition of full ownership, Stellantis is ramping up its production capacity from 16,000 units in 2026 to more than 43,000 units annually by 2028.

Stellantis Automobiles India, which owns the French carmaker Citroën, has struggled in the Indian market. Despite entering the country in 2021, the Citroën brand has failed to make inroads in the Indian market. It accounts for just 0.2% share of India’s 4.7 million passenger vehicle market.

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However, India remains a strategic market for Stellantis, serving as an important hub for manufacturing, engineering and exports. Full ownership of SAIPL provides a simplified governance structure, greater operational flexibility and stronger alignment with the company's global priorities, the company said.

Stellantis said the acquisition reinforces its confidence in the country's long-term growth potential. Funded through Foreign Direct Investment (FDI), the transaction strengthens Stellantis' ability to drive deeper operational integration, faster decision-making and greater agility in a market that remains central to its global growth strategy, it said.

In 2017, Stellantis and the CK Birla Group came together to establish a long-term manufacturing and mobility partnership in India.

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Since the start of vehicle assembly operations in 2021, Stellantis' Thiruvallur facility has become a key pillar of the company's growth strategy in India. The plant manufactures the Citroën C3, ë-C3, C3 Aircross, and Basalt, achieving over 95% localisation.

Stellantis said it has invested over 1 billion euros in India to support its long-term growth ambitions, including manufacturing, product development, localisation, and capability building.

Stellantis said the production ramp-upis expected to create employment opportunities, with the direct workforce projected to more than double from 610 employees in 2026, while generating indirect employment across the supplier and logistics ecosystem.

Thiruvallur is also expanding its global footprint, serving customers across eight export markets spanning four continents, the automaker said.

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"India remains a key pillar of Stellantis' growth strategy. Having invested close to Rs 11,000 crore 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,” said Shailesh Hazela, CEO and Managing Director, Stellantis India.

"We are committed to driving growth through new product investments, expanded manufacturing capacity, stronger export competitiveness and deeper localisation. India is playing an increasingly important role within Stellantis' global network, and we see significant potential to further scale our operations and contribution to the country's industrial growth,” he added.