Stellantis takes full control of Tiruvallur plant, targets 50,000+ vehicles by 2027

Stellantis India has bought CK Birla Group’s stake in its Tiruvallur manufacturing joint venture. The automaker plans further Tamil Nadu investment, aims to lift annual output from 18,000 vehicles in 2026 to over 50,000 by 2027, and expects exports to account for 60% of volume.

— Source publishedMon, 21 Sept, 2026, 10:00 IST·First seen Mon, 21 Sept, 2026, 10:55 IST·Source The Hindu BusinessLine

What happened

Stellantis India bought CK Birla Group’s stake in its Tiruvallur vehicle-manufacturing joint venture, taking full ownership. It plans additional Tamil Nadu

Key facts

  • Over €1 billion invested in India
  • Production targeted to rise from 18,000 units in 2026 to over 50,000 annually by 2027
  • More than 95% localisation
  • Domestic/export mix currently 70%/30%; expected to shift to 40%/60% by 2027
  • Tiruvallur capacity around 60,000 vehicles
  • Direct workforce to rise from around 600 to over 1,000
  • Hosur capacity: around 250,000 engines and 350,000 transmissions annually

Why this matters

Buying out CK Birla Group simplifies governance and secures Stellantis sole control of a 60,000-unit strategic manufacturing asset in Tamil Nadu.

What to watch

  • Monthly Tiruvallur production and export dispatches versus the 18,000-unit 2026 and 50,000-plus 2027 targets.
  • Announcements of new Citroën, Jeep, Leapmotor or export-only model allocation to the plant.
  • Tamil Nadu supplier localisation contracts, vendor-capex announcements and import-content reduction.
  • Citroën India wholesale and retail registrations, dealer additions or closures, and incentive intensity.
  • Port capacity, export destination launches and changes in Indian auto-export or tariff policy.
  • Expand and rationalise Citroën retail touchpoints toward higher-throughput city clusters, especially in Tamil Nadu and other southern markets.
  • Increase local sourcing of powertrain, interiors, electronics and stamped parts to reduce import exposure and improve vehicle pricing.
  • Prioritise export-market homologation, port logistics and regional distribution agreements for Africa, Middle East and ASEAN destinations.
  • Use full ownership to consolidate manufacturing decisions and assess additional models or contract production at Tiruvallur.
  • Offer targeted financing, exchange bonuses and service packages to lift Citroën dealer footfall without broad-based discounting.