Stellantis outlines plans for ASEAN region, to invest RM2 billion

Stellantis, which was formed in 2021 as a merger between Fiat Chrysler Automobiles and the French PSA Group, has outlined its plans for new mobility solutions for the ASEAN region which include its ambition to lead the shift to electrification.

The fourth largest automobile group in terms of the total sales volume (at the end of 2022) of its 14 brands is aiming to bring its STLA Medium platform to the ASEAN region. The STLA Medium platform was unveiled in June 2023 and is a global vehicle platform that can be used for different vehicle types, including electric vehicles.

As part of its Dare Forward 2030 strategy, Stellantis is investing over RM2 billion (€400 million) to introduce the STLA Medium platform. It will be used for electrified vehicles and also vehicles with combustion engines for the ASEAN region.

Through this investment, Stellantis is committed to lead the shift to electrification in ASEAN markets which can unlock many new opportunities that extend beyond manufacturing. This could include growth due to a local electrification ecosystem, including the local assembly of battery packs and related new job opportunities, which stimulate local business and positively impact the economy. Local sourcing opportunities for local suppliers and manufacturers of over RM5 billion (€990 million) could be achieved within the next 4 years

Commitment to net zero carbon output
“Stellantis’ ASEAN growth and expansion plans align with the company’s global commitment to achieve net carbon zero output by 2038 by reducing its environmental impact and promoting sustainability. A big part of our ASEAN plan centres around innovation that comes with the shift to electrification and technology. This will position Stellantis at the forefront of a new era of mobility solutions,” said Daniel Gonzalez, Chief Operating Officer for ASEAN & General Distributors.

“The potential of EVs is immense in ASEAN and we want to lead the expansion of electrification in this region. Producing EVs here in ASEAN includes the development and engineering of vehicles tailored to the specific needs of local consumers in this region,” he added.

Citroen EVs to be assembled in Indonesia
In line with its ambitions for the ASEAN region, Stellantis is partnering with the Indonesian government and other Indonesian stakeholders as part of its localisation and upstream battery materials investment plan to support its electrification strategy. This includes an agreement with its business partner in Indonesia, Indomobil to begin local assembly of Citroen electric vehicles in 2024.

Stellantis is also a member of the international consortium formed to develop a ‘Responsible Green Electric Vehicle ecosystem’ in Indonesia. Having these initiatives will help Stellantis grow its presence in the country in support of its goals in the region.

Regional production hub in Kedah
The group also has an assembly plant in Gurn, Kedah, which it fully acquired from the NAZA Group in 2021. It is evaluating the potential of the plant as a regional hub to manufacture battery electric vehicles for the Malaysian and other markets in ASEAN. The plant currently produces key Peugeot models such as the 2008, 3008 and 5008 which are sold in Malaysia (through Bermaz Auto Alliance) and also exported to the Philippines, Thailand and Cambodia.

Additionally, as part of its ‘Built in ASEAN for ASEAN’ roadmap, Stellantis has its India and Asia Pacific Regional HQ in Kuala Lumpur. Further growth initiatives in the region include the establishment of a fully functional Regional Training Academy and Centre for competency-based upskilling in Product, Commercial, and After-sales services, as well as forging business partnerships with local companies to develop new mobility solutions and services for the region.

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