Stellantis Tamil Nadu Plant : Stellantis has taken complete control of its manufacturing operations in Tamil Nadu, marking a new phase in the company’s India strategy.
On September 21, 2026, Stellantis India announced that it had acquired the remaining stake held by Hindustan Motor Finance Corporation Ltd. (HMFCL), a CK Birla Group company, in Stellantis Automobiles India Private Limited (SAIPL). With the transaction completed, Stellantis now owns 100% of SAIPL and its manufacturing operations at Thiruvallur, Tamil Nadu.
The move is more than a change in ownership structure. Stellantis says full ownership will allow deeper operational integration, faster decision-making and greater flexibility in the Indian market.
At the same time, the company has announced an ambitious production expansion. Stellantis plans to increase output at the Thiruvallur facility from around 16,000 units in 2026 to more than 43,000 units annually by 2028, representing a production ramp-up of more than 160%.
For a company that currently operates Citroën in India and has been building its local manufacturing and export ecosystem, this could become an important next step.
Stellantis Now Owns the Tamil Nadu Manufacturing Operation Completely
The Thiruvallur plant was previously operated through a partnership between Stellantis and the CK Birla Group.
The relationship dates back to 2017, when Stellantis and the CK Birla Group established their long-term manufacturing and mobility partnership in India. Vehicle assembly at the facility began in 2021.
Now, Stellantis has acquired HMFCL’s remaining stake.
The transaction was funded through Foreign Direct Investment (FDI). According to Stellantis, complete ownership will simplify the company’s governance structure and give it greater operational flexibility in India.
The company has not disclosed the financial value of the stake acquisition in its official announcement.
What Cars Are Made at the Thiruvallur Plant?
The Tamil Nadu facility currently plays an important role in Stellantis’ Citroën operations.
According to the company’s official announcement, the plant manufactures:
- Citroën C3
- Citroën ë-C3
- Citroën C3 Aircross
- Citroën Basalt
The facility has also achieved more than 95% localisation, highlighting the role of Indian suppliers in Stellantis’ manufacturing operations.
The plant is not focused only on India’s domestic market.
Stellantis says vehicles manufactured at Thiruvallur are exported to eight markets across four continents. This gives the Tamil Nadu facility a role in the company’s wider global manufacturing and export network.
Production Target to Rise More Than 160%
The biggest announcement alongside the ownership change is Stellantis’ production expansion plan.
The company currently expects production at Thiruvallur to reach around 16,000 units in 2026.
By 2028, Stellantis is targeting more than 43,000 units annually.
That represents a production increase of more than 160% from the 2026 level.
The target is significant because Stellantis is not simply taking full ownership of an existing facility. It is also planning to increase utilisation of the plant and strengthen its manufacturing operations.
The company says the expansion will be supported by new product investments, increased manufacturing capacity, stronger export competitiveness and deeper localisation.
Exactly which new products will drive the additional production volume has not been fully detailed in the latest announcement.
That means the 43,000-unit target should be viewed as a manufacturing objective rather than a confirmed production number for any particular future model.
More Jobs Expected at the Tamil Nadu Plant
The planned production expansion could also increase employment.
Stellantis currently has around 610 direct employees in 2026 at the relevant operation, according to its announcement.
The company expects the direct workforce to more than double as production expands. Stellantis also expects additional indirect employment across its supplier and logistics ecosystem.
This could increase the importance of the Thiruvallur facility within Tamil Nadu’s wider automotive manufacturing ecosystem.
The state already has a large network of automotive suppliers, engineering companies and logistics operations, giving manufacturers access to an established industrial base.
Stellantis Has Invested More Than €1 Billion in India
The full-ownership move comes after significant investment by Stellantis in the Indian market.
According to the company, Stellantis has invested more than €1 billion in India across manufacturing, product development, localisation and capability building.
Stellantis India CEO and Managing Director Shailesh Hazela said the company has invested close to ₹11,000 crore in the country to develop its manufacturing, engineering and export ecosystem.
The company now wants to build on this investment through additional product and manufacturing activity.
India therefore continues to occupy an important position in Stellantis’ regional strategy.
Thiruvallur Is Also an Export Hub
One of the interesting aspects of the Tamil Nadu facility is its international role.
Stellantis says the Thiruvallur operation serves customers across eight export markets covering four continents.
Earlier in 2026, Stellantis also highlighted the role of India-developed products in international markets.
In April, the company announced the rollout of its 50,000th vehicle from the Thiruvallur facility. Stellantis said its Smart Car platform was developed in India for India and the rest of the world, with Indian R&D teams leading the programme’s development and industrialisation. [ Stellantis Tamil Nadu Plant ]
The company also said vehicles based on this platform serve markets in Latin America, the Middle East and Africa, reinforcing India’s role within its global engineering and manufacturing network.
This means the Tamil Nadu plant has significance beyond Citroën’s Indian sales.
What Full Ownership Means for Citroën in India
Citroën entered the Indian market with a strategy centred around local manufacturing and products designed around the needs of multiple markets.
The Thiruvallur plant has become an important part of that strategy.
With Stellantis now controlling the manufacturing operation completely, the company says it can make decisions more quickly and integrate its Indian operations more closely with its global priorities.
The immediate question, however, is what this means for future Citroën products.
Stellantis has confirmed that it wants to drive growth through new product investments, but the September 21 announcement does not provide a detailed model-by-model launch plan for Thiruvallur.
Therefore, future products should not be treated as confirmed until Stellantis announces them officially.
Why Tamil Nadu Is Important for Stellantis
Tamil Nadu has become one of India’s major automotive manufacturing centres.
For Stellantis, the region offers an established supplier ecosystem, skilled workforce and export connectivity.
The company’s own announcement describes the Thiruvallur facility as benefiting from a strong supplier and logistics ecosystem and contributing to Tamil Nadu’s position as an automotive manufacturing hub. [ Stellantis Tamil Nadu Plant ]
This infrastructure becomes particularly important when a manufacturer wants to increase production without building an entirely new operation from the ground up.
Stellantis can therefore use its existing manufacturing base while expanding production, localisation and exports.
What Happens Next?
The next phase will focus on execution.
Stellantis has already set the production objective of more than 43,000 units annually by 2028. The company also wants to strengthen exports, introduce new products, expand manufacturing capacity and deepen localisation.
For consumers, the most important development will be the products that emerge from this investment.
The current Thiruvallur facility already manufactures four Citroën models. Future product announcements will determine how much of the additional capacity is used for existing models, updated products or new vehicles.
For now, Stellantis has clearly confirmed the direction: greater control, higher production capacity and a stronger manufacturing and export role for India.
Gaadi Xpert Verdict
Stellantis taking 100% ownership of its Thiruvallur manufacturing operation is an important development for the company’s India business.
The immediate impact is structural: Stellantis has ended the earlier joint-ownership arrangement with the CK Birla Group by acquiring HMFCL’s remaining stake in SAIPL. The company now has complete ownership of the Tamil Nadu operation.
The bigger story is what comes next.
Stellantis plans to increase production from 16,000 units in 2026 to more than 43,000 units annually by 2028, while more than doubling its direct workforce from the current 610 employees. [ Stellantis Tamil Nadu Plant ]
The Thiruvallur facility is already producing Citroën C3, ë-C3, C3 Aircross and Basalt, with more than 95% localisation and exports to eight markets across four continents.
If Stellantis delivers on its announced production and investment plans, Tamil Nadu will play an even larger role in the company’s Indian and international manufacturing network.
For now, the 43,000+ units target, future product investments and export expansion are the key developments to watch.
