Stellantis Puts European Expansion with JLR and Tata on Hold, Focuses on China and In-House Development

Stellantis NV (STLA.US) has stated it currently has no plans to extend its recent collaborations with Jaguar Land Rover and Tata Motors to the European market. Emanuele Cappellano, CEO of Stellantis Europe, made this announcement on Friday. Last month, the automotive giant unveiled a series of partnership agreements under its new long-term strategy, including a deal with Jaguar Land Rover for the U.S. market and one with Tata Motors for the Indian market. Analysts had previously speculated that these collaborations could also provide support for Stellantis in Europe. The company is still evaluating technical solutions for the European market, which includes the development of large vehicle models. Cappellano clarified that expanding the joint ventures with Jaguar Land Rover and Tata Motors to Europe is not a current priority. "When we designed these joint ventures for the U.S. and Indian markets, we did not consider the European market," he stated during a media briefing in Turin, where he outlined parts of the business plan for Europe announced by Stellantis last week. "If a clear benefit emerges in the future, such as a suitable product opportunity, we could certainly consider expanding into Europe, but it is not our focus at the moment." Earlier this week, Cappellano revealed that Stellantis is exploring options to provide technical support for future large models of its European luxury brand, Alfa Romeo. The options under consideration include in-house development or partnerships with external entities. Alfa Romeo plans to launch two new mid-sized models by 2030 but has paused the specific release timeline for the next-generation versions of its large sedan, the Giulia, and the SUV, the Stelvio. Additionally, Cappellano stated on Friday that Stellantis is considering introducing a low-volume niche Jeep model produced by its Chinese joint venture partner, Dongfeng Motor Group (600006.SH), into the European market. This month, Stellantis signed a $1.2 billion agreement with Dongfeng Motor Group to produce Peugeot and Jeep brand vehicles in China for domestic sales and export. The two companies also announced plans for collaboration in Europe, including cooperation in manufacturing. This initiative represents another European project with a Chinese partner for Stellantis, alongside its partnership with Chinese EV maker Leapmotor (09863.HK).