Manufacturing

Stellantis hails Middle East and Africa sales surge

March 6, 2024, 4:12 AM

The assembly line at a Stellantis plant in Italy. The company has factories in Algeria, Morocco and Egypt

Revenues increase by 64%
‘Ambitious plans’ for region
EVs to make up 35% of total

Multinational car maker Stellantis has announced that its 2023 Middle East and Africa revenues grew by 64 percent year on year to more than $11.5 billion.

Stellantis is one of the world’s biggest automakers – its brands include Alfa Romeo, Chrysler, Citroën, Peugeot and Vauxhall. It said shipments to the region totalled 616,100, up 43 percent.

Adjusted operating income – revenue less any operating expenses – more than doubled to $2.7 billion. Market share also increased three percentage points to 15 percent. The company is targeting 22 percent by 2030.

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Samir Cherfan, chief operating officer at Stellantis Middle East and Africa, said the company has “ambitious plans” to become the number one player in the region, with one million vehicles sold by 2030, of which 35 percent would be electric.

“We want to move to over 90 percent regional production autonomy, meaning producing in the region for the region, which will position us by far as the most localised player in the region,” he explained.

In Algeria, Stellantis is aiming to hit a locally made rate of 35 percent in 2026. The Amsterdam-headquartered company launched its commercial operations in the country in March and now has more than 50 points of sale, offering nine models from Fiat and Opel.

The company began production of the Fiat 500 in December at its Tafraoui plant in Algeria, where it aims to produce 40,000 semi-knocked down (partially assembled) units this year, reaching 90,000 fully assembled units by 2026.

It also plans to double production capacity in Morocco to reach 400,000 vehicles this year. Citroën, Opel and Fiat models were added last year.

In Egypt, Stellantis has also announced plans for a new manufacturing plant, while production increases are also planned in Turkey following the merger of all Stellantis commercial activities under one single entity called Tofas.

Globally, Stellantis reported record full-year revenues up 6 percent to $206 billion.

In September, Stellantis said it had developed a low-carbon e-fuel with Saudi oil major Aramco. It is intended to work in the engines of 24 million existing vehicles in Europe that use conventional petrol.

Produced by Aramco, the fuels are made by reacting carbon dioxide, captured either directly from the atmosphere or from an industrial facility, with renewable hydrogen.

Estimates about the number of vehicles they could work in are based on 24 Stellantis engine types used in European vehicles sold since 2014.

Stellantis said it intends to halve its carbon footprint from 2021 levels by 2030 and become net zero by 2038.