Stellantis Buys Out CK Birla's Stake to Take Full Control of Thiruvallur Plant

Stellantis has acquired the remaining stake held by Hindustan Motor Finance Corporation Ltd (HMFCL), a CK Birla Group company, in Stellantis Automobiles India Private Limited (SAIPL), giving the automotive group full ownership of its manufacturing joint venture in Thiruvallur, Tamil Nadu. The transaction, announced on Sunday and funded through foreign direct investment, ends a partnership that began in January 2017, when the erstwhile PSA Group and CK Birla Group came together to build Citroën's India business.

Both companies have kept the equity percentage and deal value confidential. Shailesh Hazela, chief executive and managing director of Stellantis India, said full ownership would allow "greater integration" and a faster response to customer and market needs, adding that the company had invested close to ₹11,000 crore in India towards manufacturing, engineering and exports — a figure roughly consistent with the group's own claim of over €1 billion in cumulative India investment.

The Thiruvallur plant, which began vehicle assembly in 2021, currently builds the Citroën C3, ë-C3, C3 Aircross and Basalt, with localisation levels the company says exceed 95 per cent. Stellantis is targeting a steep production increase, though its figures on the pace of that ramp-up have varied: the company's statement cites growth from 16,000 units this year to more than 43,000 by 2028, while Hazela told journalists separately that output stood at 18,000 units annually and was expected to approach 50,000 by 2027. Either way, the direction is unambiguous — Stellantis wants Thiruvallur working closer to capacity, with its direct workforce, currently around 610, expected to more than double over the same period.

The buyout comes as Citroën remains a marginal presence in India, holding roughly 0.3 per cent of passenger vehicle market share and selling under 7,000 units in 2025, though volumes have picked up sharply in recent months off a low base. The brand has struggled with a thin dealer network and limited model appeal since its 2021 launch, prompting a "Citroën 2.0" revamp unveiled last year alongside a refreshed line-up. Full ownership of the Tamil Nadu unit gives Stellantis a simpler governance structure to push that turnaround, and to lean harder on Thiruvallur as an export base — the company says the plant already ships to eight markets across four continents, building on established shipments to Africa and parts of South and Southeast Asia.

The move also sits within Stellantis's broader global strategy of consolidating manufacturing footholds in high-growth markets, with the group separately preparing to introduce its Leapmotor electric vehicle brand in India. For Tamil Nadu, already home to plants run by Hyundai, Renault-Nissan and Royal Enfield, the consolidation reinforces the state's standing as a manufacturing and export hub for the automotive sector.