Tavares Says Stellantis Must “Be Chinese Ourselves” To Win The EV Market

Stellantis chief executive Carlos Tavares believes the best way to compete with electric vehicles emerging out of China is to adopt the same low-cost mindset and look for ways to build EVs for less.

Tavares has previously spoken out against the European Union’s tariffs on Chinese EVs, describing them as a “major trap for the countries that go on that path,” suggesting they will not encourage Western car manufacturers to make the necessary changes required to properly challenge Chinese competitors. According to Tavares, the best way forward is to “try to be Chinese ourselves.”

Read: Stellantis’ Leapmotor B10 Compact SUV Is Coming For The Kia EV3

This new approach is most evident with Stellantis’ 21% stake in Chinese automaker Leapmotor. The deal was done in October last year and gives the European brand access to Leapmotor’s technology as well as the exclusive rights to produce its EVs outside of China. It already started production at its plant in Tychy, Poland, and Tavares has said Stellantis could even build Leapmotor EVs in North America.

Stellantis isn’t the only Western conglomerate to partner with a Chinese carmaker. Volkswagen has partnered with EV startup Xpeng to co-develop two EVs and Audi will work alongside SAIC for new EVs.

Stellantis could face hurdles if it wants to build Leapmotor products in North America. While doing so would avoid Leapmotor having to pay any of the direct tariffs it would have to if it started selling Chinese-made EVs in the US, the Biden administration recently moved to ban Chinese software and hardware being used by any vehicles sold locally. This would force Stellantis to build Leapmotor products with non-Chinese parts, Reuters notes.

Despite challenges facing the entire EV industry, Stellantis remains steadfast in its plans. By 2030, it wants to be selling nothing but EVs in Europe and by the same date, expects 50% of its US sales to be for EVs. It’s confident that cheap models like the Citroen e-C3, as well as those from Leapmotor, will help it achieve these goals.