GST 2.0 to push up passenger car industry growth to 5 pc: Stellantis India CEO

Mumbai, Nov 23 (PTI) The passenger car industry is expected to log over 5 per cent volume growth, driven by the recent GST 2.0 reforms, which have particularly boosted the demand for small cars, a top Stellantis India official has said.

Stellantis India, which operates two brands -- Jeep and Citroen -- in the country and has three manufacturing facilities in India, including the Hosur powertrain and gearbox plant, also said it is eyeing an over four-fold jump in exports to Rs 10,000 crore next year, in component exports, from Rs 4,000 crore.

Hosur facility, along with the one in Bengaluru, churns out up to 3.74 gearboxes and 3 lakh engines per annum is serving as a key pillar Stellantis global business.

Prior to the GST 2.0 reforms, there was hardly any growth in car sales, Shailesh Hazela, Managing Director and CEO at Stellantis India, said, adding, "But with GST, the growth percentage will be more than 5 per cent for the auto (industry)." Stating that automobiles' demand went up in the last eight days of September when GST 2.0 was implemented, and then in October as well, he said, "It is continuing (as of now). I think the best area is of the smaller car where people are able to migrate, who are sitting on the fence, they are able to migrate from a two-wheeler to a four-wheeler." That is the segment, in my opinion, which is getting more and more benefitted and it should continue, he said.

Hazela said Stellantis India also got the benefit of lower GST rates, especially in its Citroen brand of car portfolio, which has a lot of cars below Rs 13 lakh, as well as in the jeep model, which got cheaper by 10 per cent.

Significantly, the company clocked 1,426 units in the previous month, riding high on the GST reforms and festive sale.

He said the company plans to expand its domestic market operations with enhanced exports, larger retail footprint as well as new products under both the brands.

The company continues to look at innovation and agility in the domestic market to remain there in terms of competitiveness, products and technology, he said.

Stellantis has 14 iconic brands globally, including Chrysler, Dodge, Maserati, Jeep, Citroen, Fiat, Opel, and Peugeot.

The Hosur plant, with nearly 90 per cent localisation through a network of 138 suppliers mainly from Tamil Nadu, produces powertrains for models such as Peugeot 208, Opel Corsa, and Opel Mokka.

Its India product portfolio includes C3 hatchback and its electric version EC3, C3 Aircoss and Aircross X SUV, Basalt and Basalt X Coupe-SUVs, which are all based on smart car architecture, besides C5 Aircross.

As much as 95 per cent of the production from this plant goes into exports, Hazela said. Stellantis, in all, has 44 manufacturing facilities globally and Hosur facility accounts for 5 per cent of its total production globally.

Hazela said as India is the hub of manufacturing, software, IT and supply chain and Hosur plant is using the country's all these capabilities fully.

He said the company has invested Rs 11,000 crore in its india business so far, and added that in Stellantis, the investment is driven by capex and not demand. PTI IAS TRB