Stellantis has announced an investment plan for South America, committing to allocate a total of €5.6 billion, equivalent to 30 billion Brazilian reals, from 2025 to 2030. This figure represents the largest investment ever made in the Brazilian and South American automotive industry. The planned funding will support the launch of over 40 new products over the next five years, the development of new Bio-Hybrid technologies, the adoption of innovative solutions for decarbonization throughout the automotive supply chain, and the opening of new business opportunities.
Stellantis announces a 5.6 billion euros investment in South America from 2025 to 2030
With this investment, Stellantis further strengthens its leadership position in the region, contributing to the development of the local industry and accelerating the achievement of long-term strategic goals outlined in the Dare Forward 2030 plan. The region maintains its leadership in providing clean, safe, and economically accessible mobility solutions both in Brazil and throughout South America.
Within the context of the Dare Forward 2030 strategic plan, Stellantis plans to invest over 50 billion euros in electrification over the next ten years, aiming to become a carbon-neutral company in all its operations by 2038, with a percentage offset of residual emissions. South America plays a fundamental role in the so-called “third engine,” which includes the regions of South America, the Middle East, Africa, China, India, and the Asia Pacific, and significantly contributes to Stellantis’ revenue growth outside of North America and Europe.
Following this investment, advanced Bio-Hybrid technologies are among the primary beneficiaries, combining electrification with hybrid engines powered by biofuels such as ethanol, in three different configurations. The Stellantis Betim plant in Brazil plays a key role as the company’s global competence center for Bio-Hybrid technology, continuing its tradition of innovation. Stellantis, through the Fiat brand, has been a pioneer in the development and application of biofuel engine technology, using 100% ethanol. Additionally, the region plans to produce a battery electric vehicle (BEV) in the future.
The production of the first vehicles equipped with Bio-Hybrid technology is flexible and can be integrated into various models produced by Stellantis, as it is compatible with all of the company’s production lines in the region. The introduction of new hybrid and electric technologies is expected to strengthen design activities in Brazil and the national automotive industry as a whole. Bio-hybrid technology is supported by three types of hybrid propulsion systems, which will be progressively developed and introduced to the market. These new technologies include the Bio-Hybrid platform, Bio-Hybrid electrified dual-clutch transmissions (eDCT), the Plug-In Bio-Hybrid system, and battery electric vehicles (BEVs). The new hybrid technologies are expected to be available on the market by the end of 2024.
Stellantis holds a leadership position in the three major markets of South America: Brazil, Argentina, and Chile. Last year, Stellantis’ total sales in the region exceeded 878,000 units, with a market share of 23.5%. The company remains a sales leader in Brazil, where it holds a market share of 31.4%, and maintains leadership in the sale of light commercial vehicles in South America, with a market share of 28.6%. The Fiat brand continues to be the best-selling brand in both Brazil and South America, with the Fiat Strada pickup remaining the best-selling vehicle.
Thanks to this investment, Stellantis will be even better prepared to design, develop, and produce cutting-edge vehicles in the region while simultaneously expanding its business. In Argentina, for example, the company acquired a 19.9% stake in Argentina Litio y Energía S.A., taking a significant step towards creating a cluster of sustainable battery raw materials, in line with the electrification goals of its global plan. Furthermore, with the acquisition of Norauto and DPaschoal, Stellantis is now the leading auto parts distributor in South America and plans to further expand its presence in the aftermarket segment.
“This announcement underscores our confidence in the future of the South American automotive industry and responds to the favorable entrepreneurial climate in the region,” said Carlos Tavares, CEO of Stellantis. “South America plays an essential role in our ‘third engine’ growth strategy and will be a catalyst in promoting mobility decarbonization, working closely with our employees, partners, and supply chain. I want to personally thank all the team members who have contributed to developing and implementing our investment strategy, demonstrating our commitment to leadership in automotive sector carbon neutrality.”