Chennai: 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), giving the global automaker full ownership of its manufacturing operations in Thiruvallur, Tamil Nadu.
The transaction, funded through Foreign Direct Investment (FDI), effectively brings the manufacturing venture entirely under Stellantis and is expected to simplify governance, speed up decision-making and give the company greater flexibility as it expands its operations in India.
The move comes as Stellantis prepares for a substantial increase in production at the Thiruvallur facility. The company is targeting annual output of more than 43,000 vehicles by 2028, compared with around 16,000 units in 2026 — an increase of more than 160%.
Stellantis also expects the expansion to have a significant employment impact. The direct workforce at the plant, which stands at 610 employees in 2026, is projected to more than double as production rises. The company said additional indirect employment is expected across its supplier and logistics network.
Citroën Models Produced at Thiruvallur
The Thiruvallur plant currently manufactures the Citroën C3, ë-C3, C3 Aircross and Basalt. According to Stellantis, the vehicles produced there have achieved localisation levels of more than 95%, reflecting the company’s strategy of sourcing and manufacturing a substantial proportion of components within India.
Vehicle assembly operations at the facility began in 2021.
The plant is also playing an increasingly important role in Stellantis’ export strategy. It currently supplies vehicles to eight overseas markets spread across four continents, giving the Tamil Nadu facility a role that extends well beyond domestic demand.
The arrangement between Stellantis and the CK Birla Group dates back to 2017, when the two companies established a manufacturing and mobility partnership in India. The acquisition of HMFCL’s remaining interest now brings that joint ownership structure to an end.
Stellantis Says India Remains Central to Growth Plans
Stellantis said it has invested more than €1 billion in India across manufacturing, product development, localisation and capability building.
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.”
Full ownership gives Stellantis a more straightforward corporate structure for its Indian manufacturing operations at a time when the company is seeking to increase capacity, deepen localisation and expand exports.
For an automotive manufacturer, fewer layers of governance can be almost as useful as fewer parts on an assembly line — particularly when production volumes are expected to rise sharply.
India Becomes Bigger Part of Stellantis’ Global Network
Stellantis views India not only as a vehicle market but also as a manufacturing, engineering and export base within its wider global network.
The Thiruvallur facility benefits from Tamil Nadu’s established automotive supplier and logistics ecosystem, while its export activities give Stellantis an additional avenue for utilising manufacturing capacity beyond the domestic market.
The proposed rise from 16,000 vehicles in 2026 to more than 43,000 annually by 2028 will therefore be an important test of the company’s ability to translate full ownership into higher volumes, more jobs and stronger export competitiveness.
With control of SAIPL now consolidated, Stellantis’ next phase in India will be measured less by the ownership structure itself and more by what follows: new products, higher plant utilisation, deeper localisation and whether India can assume a larger role in the automaker’s international manufacturing network.
