This could be a very good sign in terms of foreign direct investments into Malaysia and the South East Asian (ASEAN) region. On the 6th of November, Stellantis,,the automotive group that owns, notably Peugeot, Citroën, Ram, Maserati, Alfa Romeo and Jeep® has announced its plans for new mobility solutions for the ASEAN region which include their aim to move forward with going fully electric (or any form of clean energy) in the future. They are aiming to bring its STLA Medium platform to the ASEAN region which was unveiled globally in June 2023. STLA Medium is a global BEV-by-design vehicle platform with state-of-the-art features including best-in-class range of 700 kilometers, energy efficiency, embedded power and charging power.
In line with Stellantis’ commitment to long-term sustainability and to achieve the aims of their 'Dare Forward 2030' strategy, the automaker is investing over RM2 billion (€400 million) to introduce the STLA Medium platform in ASEAN. The platform should allow Stellantis to produce multi-energy vehicles (BEV, ICE, MHEV) in ASEAN for ASEAN which can result in local sourcing opportunities for local suppliers and manufacturers of over RM5 billion (€990 million) within the next four years.
Through this investment, Stellantis is committed to lead the shift to electrification in ASEAN markets which can unlock many new opportunities that extend beyond manufacturing. This could include growth due to a local electrification ecosystem, including the local assembly of battery packs and related new job opportunities, which stimulate local business and positively impact the economy.
“Stellantis’ ASEAN growth and expansion plans align with the company’s global commitment to achieve net carbon zero output by 2038 by reducing its environmental impact and promoting sustainability. A big part of our ASEAN plan centers around innovation that comes with the shift to electrification and technology. This will position Stellantis at the forefront of a new era of mobility solutions. The potential of EVs is immense in ASEAN and we want to lead the expansion of electrification in this region. Producing EVs here in ASEAN includes the development and engineering of vehicles tailored to the specific needs of local consumers in this region,” said Daniel Gonzalez, Chief Operating Officer for ASEAN & General Distributors at Stellantis.
So what has Stellantis been doing so far in the region?
In 2021, Stellantis acquired 100% ownership of the Naza Group's Gurun plant in Kedah and established its India and Asia Pacific Regional HQ in Kuala Lumpur as part of its “Built in ASEAN for ASEAN” roadmap. Stellantis is evaluating the potential of the Gurun plant as a regional manufacturing hub to manufacture battery electric vehicles (BEVs) for both domestic and export markets in ASEAN. The plant currently produces key Peugeot models including 2008, 3008 and 5008 which are distributed to markets in the region including Malaysia, the Philippines, Thailand and Cambodia.
In July 2023, Stellantis became a member of the international consortium formed to develop a “Responsible Green Electric Vehicle ecosystem” in Indonesia. Having these initiatives will help Stellantis grow its presence in Indonesia in support of its goals in the region.
Currently, Stellantis is partnering with the Indonesian government and other Indonesian stakeholders as part of its localisation and upstream battery materials investment plan to support its electrification strategy. This includes an agreement with its business partner in Indonesia, Indomobil Group -- an experienced local integrated automotive company -- to begin local assembly of Citroën electric vehicles in 2024.
Other notable growth initiatives in the region include the establishment of a fully functional Regional Training Academy and Centre for competency-based upskilling in Product, Commercial, and After-sales services, as well as forging business partnerships with local companies to develop new mobility solutions and services for the ASEAN region.
The ASEAN & General Distributors organization is a vital part of the India & Asia Pacific (IAP) region. The IAP region is one of the “Third Engine” growth regions of Stellantis together with South America and the Middle East & Africa. One reason for the push to invest in ASEAN is like any grouping of nations, it forms an economic caucus, much like the European Union and when companies invest in the region, it allows for various forms of tax breaks for trade within the zone. There it would make more economic sense to invest in the region so that prices of one's product become competitive vs others who have also invested in the region.
It would be interesting to see where this bit of news goes forward a few years down the road. How much would come out of it for Malaysia and also the region. Stellantis, with over €180 billion in net revenues achieved in 2022 and a commercial presence in 130 markets, is focused on driving the adoption of BEVs in the ASEAN region through its portfolio of upper mainstream European brands, global SUVs, American brands, and luxury and premium marques. The automaker aims to have over 75 BEVs and to reach global annual BEV sales of 5 million vehicles by 2030.
The ASEAN & General Distributors organization is a vital part of the India & Asia Pacific (IAP) region. The IAP region is one of the “Third Engine” growth regions of Stellantis together with South America and the Middle East & Africa. One reason for the push to invest in ASEAN is like any grouping of nations, it forms an economic caucus, much like the European Union and when companies invest in the region, it allows for various forms of tax breaks for trade within the zone. There it would make more economic sense to invest in the region so that prices of one's product become competitive vs others who have also invested in the region.
It would be interesting to see where this bit of news goes forward a few years down the road. How much would come out of it for Malaysia and also the region. Stellantis, with over €180 billion in net revenues achieved in 2022 and a commercial presence in 130 markets, is focused on driving the adoption of BEVs in the ASEAN region through its portfolio of upper mainstream European brands, global SUVs, American brands, and luxury and premium marques. The automaker aims to have over 75 BEVs and to reach global annual BEV sales of 5 million vehicles by 2030.
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