Stellantis grapples with EV transition in 2024

Market: Battery materials, Metals
28/02/25

Global car giant Stellantis performed "well below potential" in managing the transition to electric vehicles (EVs) last year, the company acknowledged in its 2024 annual report.

Price competition in China and slow adoption rates weighed on Stellantis' margins for EVs, while an overall decline in demand in Europe weighed heavily on results.

"2024 performance was well below our potential, owing primarily to the combination of operational difficulties and disruptions associated with transitioning to our next generation of products," Stellantis chairman John Elkann said.

Total vehicle sales at the group fell to 5.7mn in 2024 from 6.2mn a year earlier, while fully battery electric vehicle (BEV) sales fell to 314,500 from 369,000 in 2023.

Stellantis' market share declined in key regions, particularly North America and Europe. The company's share of the North American market fell to 8pc in 2024, from 9.6pc in 2023 and 10.9pc in 2022. In Europe, market share declined to 17pc, from 18.3pc in 2023 and 19.7pc in 2022.

China JV key to market expansion

Stellantis' Chinese joint venture with Leapmotor — Leapmotor International — was key to expanding its market share in Europe. Stellantis holds exclusive rights to manufacture, export and sell Leapmotor vehicles outside China.

Stellantis is looking to the deal to enable it to take advantage of Leapmotor's supply chains and technology for low-priced EVs, while Leapmotor is seeking to leverage Stellantis' footprint in the EU to expand its global reach.

The company warned of the potential impact of trade policies on its business in 2025, especially regarding the US and its trading partners.

"Tariffs or duties implemented between the US and its trading partners or among other major economies may result in increased productions costs, higher consumer prices, reduced consumer demand and/or reduced profitability for our products," a company spokesperson said. "In addition, the availability of components and raw materials may be adversely affected."

By Thomas Kavanagh

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