Stellantis buys CK Birla stake in Citroen plant — Eyes higher production by 2028

Stellantis India 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). With the deal complete, Stellantis now has full ownership of SAIPL and its manufacturing operations in Thiruvallur, Tamil Nadu. This ends the joint venture between the two companies that began in 2017.

Stellantis says the move reflects its confidence in India's long-term growth potential. The deal was funded through Foreign Direct Investment (FDI) and will give the company more control over its operations, allowing it to make decisions faster and manage its India business more directly.

The history of Stellantis' partnership with CK Birla Group

Stellantis and the CK Birla Group began their partnership in 2017, when the two companies set up a long-term manufacturing and mobility partnership in India. The collaboration helped establish the base for Stellantis' manufacturing operations in the country. Vehicle assembly at the Thiruvallur plant began in 2021. Since then, the facility has become an important part of Stellantis' India operations.

What the Thiruvallur plant produces

The Thiruvallur plant currently manufactures the Citroën C3, ë-C3, C3 Aircross and Basalt. The facility has more than 95% localisation, with a large local supplier and logistics network supporting its operations. Stellantis says it has invested more than €1 billion in India across manufacturing, product development, localisation and capability building. The Thiruvallur plant also supports Tamil Nadu's position as one of India's major automotive manufacturing hubs.

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Stellantis' production and employment targets

Stellantis plans to increase production at the Thiruvallur plant by more than 160%, from 16,000 units in 2026 to over 43,000 units annually by 2028. The company also expects the plant's direct workforce to more than double from the current 610 employees in 2026.

The expansion is also expected to create more indirect jobs across the supplier and logistics network. The plant currently exports vehicles to eight markets across four continents and is expected to play a bigger role as an export hub.

What Stellantis' leadership had to say

Commenting on the milestone, Shailesh Hazela, CEO and Managing Director, Stellantis India, said: "India remains a key pillar of Stellantis' growth strategy. Having invested close to INR 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."

He further added: “As we look ahead, 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.”

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