Stellantis Struggles with EV Transition Amid Falling Market Share

Stellantis EV

Leapmotor JV Offers Strategic Hope as Tariffs and Costs Loom

Stellantis reported weaker-than-expected performance in 2024, citing operational hurdles during its electric vehicle (EV) transition.

The company’s latest annual report highlights missed targets and shrinking market share across core regions.

Total vehicle sales dropped to 5.7 million, down from 6.2 million in 2023.

Battery electric vehicle (BEV) sales also declined to 314,500 units, from 369,000 the previous year.

Chairman John Elkann stated the group performed “well below potential,” primarily due to supply disruptions and slow product transitions.

Aggressive price competition in China and weak demand in Europe weighed heavily on profit margins.

Market Share Declines Across North America and Europe

In North America, Stellantis market share fell to 8%, down from 9.6% in 2023 and 10.9% in 2022.

In Europe, it dropped to 17%, a significant decline from 18.3% in 2023 and 19.7% in 2022.

Stellantis’ performance lagged behind competitors in adapting to EV demand shifts, highlighting the urgency of supply chain and pricing strategy improvements.

Leapmotor Deal Critical to Global EV Strategy

The joint venture with China’s Leapmotor has emerged as a strategic lifeline.

Through Leapmotor International, Stellantis holds exclusive rights to manufacture and export Leapmotor EVs outside China.

Stellantis aims to use Leapmotor’s low-cost supply chains and compact EV technology to expand in Europe and other global markets.

Meanwhile, Leapmotor seeks to leverage Stellantis’ distribution footprint to scale its international presence.

Looking ahead, trade policies and tariffs remain a major concern.

Stellantis warned that shifting duties could increase production costs and affect component availability in 2025.

As EV competition intensifies and regulatory challenges rise, Stellantis must move swiftly to secure its future.