Stellantis to Build Dongfeng EVs in Europe, Explore JLR Tech Tie‑up in US; India Eyed as EV Export Hub

Stellantis has announced plans to deepen its partnership with China’s Dongfeng Motor, and has signed a separate non-binding agreement with Jaguar Land Rover (JLR), as the global automaker looks to optimise underutilised capacity in Europe and expand its electric vehicle portfolio in key markets.

Under a preliminary agreement, Stellantis and Dongfeng intend to set up a Europe-based joint venture that will cover sales and distribution, manufacturing, purchasing, and engineering activities centred around Dongfeng’s new energy vehicles. The proposed entity would be led by Stellantis, which is expected to hold 51 per cent in the JV, with Dongfeng owning the other 49 per cent.

The new JV will initially focus on selling Dongfeng’s premium Voyah‑branded electric vehicles in designated European markets, leveraging Stellantis’ existing dealer and aftersales network. The partners are also exploring local production of Dongfeng’s new energy models at Stellantis’ Rennes plant in France, a facility currently running below capacity. This would also help the group comply with “Made in Europe” requirements and soften the impact of potential EU tariffs on Chinese-built EVs.

Stellantis already has a separate joint venture with another Chinese partner, Leapmotor, which is moving beyond pure distribution to include manufacturing. Two models are planned for production in Spain, and ownership of a Stellantis factory there could be transferred to the JV at a later stage.

The Chinese tie‑ups are part of a broader strategy under which the group wants to convert surplus European capacity into contract manufacturing for external brands, while also adding stripped‑down, cost‑efficient small electric cars to its lineup in markets such as Italy.

Alongside the Dongfeng announcement, Stellantis said it has signed a non‑binding memorandum of understanding with JLR to explore collaboration on product and technology development in the United States.

While neither company has disclosed detailed programmes or model plans, the discussions are understood to involve sharing platforms, technologies, and potentially manufacturing capacity at Stellantis plants in North America.

Stellantis CEO Antonio Filosa said partnering with other manufacturers on product and technology could unlock “meaningful benefits for both sides”, signalling a pragmatic approach as the industry faces heavy electrification and software investment requirements. 

The JLR MoU and the Dongfeng JV are part of a wider effort to reduce per‑vehicle costs, widen the EV range, and keep factories busy in the face of slowing demand for some battery EV models and tighter emissions rules.

For Dongfeng, which currently sells cars in only a handful of European countries such as Italy and Poland, a Stellantis‑led JV offers quicker access to a wide retail network, plus the ability to assemble vehicles inside the EU.
Local production of Voyah models and other new energy vehicles in France would also help the Chinese state‑owned group mitigate the impact of higher EU duties on cars imported from China.

Stellantis has outlined a €60 billion business plan that includes around 60 new models across combustion, hybrid and full‑electric powertrains by 2030, backed by more partnerships and optimised use of its global industrial footprint.

India, where Stellantis operates the Jeep, Citroën and Maserati brands, is being positioned as a key manufacturing, powertrain and exports base even though its local volumes remain modest. The company runs three main plants in the country – a powertrain factory at Hosur in Tamil Nadu, a vehicle plant at Ranjangaon near Pune, and another at Thiruvallur near Chennai – along with engineering and software centres in Bengaluru, Hyderabad, Pune and Chennai.

Stellantis has said the Hosur facility, which already exports engines and gearboxes for models such as the Peugeot 208, Opel Corsa and locally built Citroën C3, is on track to becoming its last global engine and transmission plant as it consolidates internal combustion production. Around 95 per cent of Hosur’s output is shipped overseas, while India as a whole contributes roughly 5 per cent to Stellantis’ global volume, underlining the country’s growing role in the company’s export strategy despite a small domestic market share.

On the EV front, Stellantis plans to introduce products from its Chinese partner Leapmotor into India as part of the second wave of the JV’s global expansion. Executives have indicated that the first Leapmotor models could arrive as fully imported units, followed by local assembly at Stellantis facilities such as Thiruvallur or Ranjangaon, depending on the business case and policy environment.

Stellantis is already building the Citroën eC3 electric hatchback in Thiruvallur. It has supplied fleet orders to Indian customers, and it is evaluating locally manufactured affordable EVs from Leapmotor that would sit below the imported EV duty threshold set by the government’s new policy.

Separately, Stellantis India has welcomed the recently concluded India‑EU Free Trade Agreement, calling it a “landmark” step that will support its long‑term commitment to “Make in India for the World”. The company expects lower trade barriers with Europe to enhance manufacturing competitiveness, expand export potential from its Indian plants, and better integrate its local operations into global supply chains at a time when the parent group is reshaping production across regions. 

The latest global partnerships with Dongfeng and JLR, combined with an expanded EV push and export‑oriented strategy in India, underline Stellantis’ preference for asset‑light collaborations and multi‑brand platform sharing over greenfield capacity additions.