Stellantis' strategy to counter Chinese expansion in Brazil: more partnerships with Chinese companies.

Stellantis has decided to leverage the technology and speed of Chinese automakers to counter the advance of Chinese companies themselves in the Brazilian market. Owner of brands such as Fiat, Jeep, Peugeot, and Citroën, the company intends to deepen its global partnerships with Leapmotor and Dongfeng to expand its portfolio of electrified vehicles, reduce development time, and reach regions where it still has little presence in this segment.

During the event celebrating Fiat's 50th anniversary in Betim (MG), Herlander Zola, president of Stellantis for South America, summarized the current market situation with a quote from Charles Darwin: "It is not the strongest or the most intelligent that survives, but the one most responsive to change."

Historically, Stellantis used to develop vehicles adapted to local conditions, fuels, and consumer preferences. However, with the rapid expansion of electric and plug-in hybrid vehicles, the company recognizes that this formula will not be sufficient for all products.

“The localization strategy has always worked very well for us. I’m sure that, for some products, it will continue to be extremely efficient. For others, however, it won’t be enough,” Zola told NeoFeed .

In these cases, the answer will come from international alliances. “We will need to draw on partnerships and solutions that we have already developed with some of our global partners. This will allow us to bring to market, in an agile, fast and competitive way, technologies similar to those that some competitors are already offering,” he said.

The main focus is Leapmotor, a Chinese automaker in which Stellantis acquired a stake and with which it created a joint venture to market vehicles outside of China. In Brazil, the brand already operates through approximately 40 dealerships. The expectation is to close the year with a network of 70 to 80 stores, bringing the models to more regions of the country. Expansion is expected to continue in 2027, accompanied by the arrival of new vehicles.

Another piece of this strategy is Dongfeng, a long-standing Stellantis partner in China. The cooperation could involve sharing factories and developing models aimed not only at Europe, but also at South America and other markets. The logic is to leverage scale, platforms, and technologies already available to respond more quickly to changes in the sector.

At the same time, the automaker announced R$ 32 billion in investments in Latin America by 2030, of which R$ 14 billion will be allocated to the Betim Automotive Hub. Although it accounts for approximately 5% of the company's global sales volume, South America represents about 18% of its results, according to Zola.

"This shows how strategic the Brazilian and South American markets are for the company. We have a great responsibility to develop products that are successful in the region," he stated.

The investment will be used to modernize factories, install new technologies, and prepare for the production of new vehicles. In Betim, a third shift will be implemented so that the complex, which is celebrating its 50th anniversary and has already produced more than 18 million vehicles, can reach its full production capacity of 650,000 vehicles per year.

The mining factory in Minas Gerais should also cease to be exclusively identified with Fiat. The intention is to expand industrial integration and produce vehicles from different brands within the group in Betim.

Still speaking to NeoFeed , Zola criticized the Brazilian regulatory environment, which, in his assessment, favors vehicles produced outside the country. Even when part of the assembly is carried out in Brazil, the executive stated, some projects do not incorporate national suppliers and components in a significant way.

“What we are seeing is a business model that favors products made outside of Brazil. Even though a portion of these products is assembled here, we are talking about programs that do not involve a production dynamic that utilizes the local supply chain,” said Zola.

According to the executive, this dynamic could jeopardize the national automotive supply chain and should be monitored by the government. "This needs to be looked at by the government because it poses risks to the national supply chain, which is very significant," he stated.