Stellantis says it strengthened its business position in China, ‘laying a solid foundation for the company’s long-term expansion’.
Dongfeng Peugeot Citroën Automobile Co., Ltd (DPCA), the joint venture formed by Stellantis and China Dongfeng Motor Corporation, sold over 100,000 vehicles in 2021, more than doubling the annual sales volume of 2020.
Stellantis says this business performance made 2021 the turnaround year for DPCA. Of the more than 100,000 vehicles, around 9,300 New Energy Vehicles (NEV) were sold, which has made DPCA a net contributor of NEV and CAFC (Corporate Average Fuel Consumption) credits of Stellantis in China.
The company also says the turnaround allowed significant improvement of DPCA’s financial situation, setting the stage for the new DPCA strategy.
“Since day one of Stellantis, we analysed the situation together with our partners and we are now finalising our plans for China, which we consider as a strategic market in terms of untapped potential,” said Grégoire Olivier, Chief Operating Officer – China, Stellantis.
Aftermarket operations restructured
In the area of independent aftermarket, after an initial investment in the independent spare parts distributors of Shanghai JianXin and Shandong United Auto Parts (UAP) in 2018, and then Fujian Longstar in 2019, Stellantis says it has now taken control of UAP, merging the three entities into one integrated national distributor. The mover creates the fourth largest spare parts distributor in terms of sales turnover in the independent aftermarket business in China.
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With a 53.5% stake in the newly integrated spare parts distributor, Stellantis says it has significant growth potential ahead. In 2021, this business had a sales turnover of €176 million in the independent after market in China.
Additional details on Stellantis’ plan for the Chinese market will be announced within the global strategic plan on March 1, 2022.