Stellantis puts SA investment on notice

Antonio Filosa, CEO of multinational automotive group Stellantis, says improving execution in South Africa will be important as the group assesses its future plans and investment in the market.

Responding to questions from Business Times at the Paris Motor Show about competition in South Africa and the prospects of reviving plans for a local manufacturing plant, Filosa said the country remained a relatively underdeveloped market for Stellantis, despite the group’s strength across the wider Middle East and Africa region.

“We are very big in Middle East and Africa, as you know. We are the second player, the second automaker in the region, and growing.

The remarks come as Stellantis attempts to strengthen brands including Peugeot, Citroën, Opel, Fiat, Jeep and Alfa Romeo in South Africa, where its market share remains modest as Chinese manufacturers continue to gain ground through aggressive pricing, expanding dealer networks and a broader vehicle offering.

“We need, number one, to make a better job, so that we can be convinced to do more,” Filosa said. “The more we improve, the more we will be able to do.”

While Filosa did not outline specific targets, his comments suggest Stellantis wants stronger sales growth, greater market penetration and clarity on future automotive policy before committing additional capital. The group has paused plans for a manufacturing facility at Coega in the Eastern Cape while reassessing market conditions, product selection and investment priorities.

Filosa’s comments come as Stellantis doubles down on Africa as a strategic growth region. Earlier this year, the company reaffirmed its FaSTLAne 2030 strategy for the Middle East and Africa, targeting a 40% increase in regional revenue while maintaining double-digit operating margins through greater localisation, regional manufacturing and a more focused portfolio.

Stellantis aims for 90% of regional sales to come from 22 key vehicle programmes that are either produced in the region or sourced competitively from Asia, reducing dependence on imported vehicles and improving cost competitiveness.

The strategy highlights the importance of Africa to the group at a time when growth opportunities in mature markets are becoming harder to find. Stellantis already ranks as the second-largest automaker in the Middle East and Africa region and views the continent as a long-term growth opportunity, driven by rising vehicle demand, urbanisation and low levels of motorisation in many countries.

However, operating conditions remain challenging. Stellantis this week reported third-quarter global shipments of 1.3-million vehicles, down 1% year on year. Shipments in the Middle East and Africa region fell 21%, largely because of weaker conditions in Turkey and lower shipments of imported vehicles ahead of new local production programmes.