Stellantis Expands: Stellantis is taking complete ownership of its vehicle manufacturing operation in Thiruvallur, Tamil Nadu, after acquiring the remaining stake held by Hindustan Motor Finance Corporation Limited (HMFCL), a CK Birla Group company.
The transaction, funded through Foreign Direct Investment (FDI), gives Stellantis direct control of the facility at a time when the automaker is preparing to significantly increase production in India. The ownership change comes as Stellantis plans a major production ramp-up at its Tamil Nadu plant.
Production is expected to increase from around 16,000 vehicles in 2026 to more than 43,000 units by 2028. The company is also preparing to expand its workforce as the facility takes on a larger role in both domestic manufacturing and exports.
Stellantis Expands
| Key Details | Current / Planned Status |
|---|---|
| Manufacturing facility | Thiruvallur, Tamil Nadu |
| New ownership | Stellantis 100% ownership |
| Previous stakeholder | Hindustan Motor Finance Corporation Ltd |
| Production in 2026 | Around 16,000 vehicles |
| Planned production in 2028 | More than 43,000 vehicles |
| Production increase | Over 160% |
| Workforce | Expected to more than double |
| Manufacturing focus | Domestic market and exports |
| Parent group of HMFCL | CK Birla Group |
Stellantis Takes Full Ownership of Thiruvallur Plant
The acquisition of HMFCL’s remaining stake marks an important change in Stellantis’ Indian manufacturing structure. The company previously operated the facility through a partnership arrangement involving the CK Birla Group. With the latest transaction, Stellantis now has complete ownership of the manufacturing operation and greater control over its production plans.
Full ownership gives the automaker more flexibility in deciding how the plant will be used in the coming years. It can directly manage manufacturing investments, production capacity and operational planning as it prepares to increase volumes. The move also comes as Stellantis looks to make India a more important part of its global production network.
Production Expected to Rise Over 160%
The biggest development linked to the ownership change is the planned increase in production. Stellantis is targeting more than 43,000 vehicles from the Thiruvallur facility in 2028, compared with approximately 16,000 units expected in 2026. This means production could rise by more than 160% over the two-year period.
The planned increase suggests that the plant will be used much more extensively in the future. Stellantis has already been using its Indian operations to manufacture vehicles for domestic customers as well as international markets. Higher production could allow the company to serve more markets while improving the utilisation of its Tamil Nadu manufacturing base.
Key Details of Stellantis’ Expansion
The ownership transition and production plan highlight how quickly Stellantis wants to scale its Indian operations. The company has already established manufacturing and engineering capabilities in the country, and the Thiruvallur facility is becoming an important part of that strategy.
- Stellantis has acquired HMFCL’s remaining stake in its Indian manufacturing operation.
- The Thiruvallur facility is expected to produce more than 43,000 vehicles in 2028.
- Production is planned to increase from around 16,000 units in 2026.
- The company expects its direct workforce at the plant to more than double.
- India is being developed as both a domestic production and export base for Stellantis.
Workforce Expansion to Support Higher Production
A major increase in vehicle production will also require a larger workforce. Stellantis currently has hundreds of direct employees working at the Thiruvallur facility, and the company expects the direct workforce to more than double as production increases. This expansion could also support additional employment through suppliers, logistics providers and other businesses connected with the automotive industry.
The plant already has a wider impact on employment in the region. Stellantis has previously highlighted the number of direct and indirect jobs supported by its Indian operations, along with its focus on developing local skills. A higher production volume could further increase demand for workers across manufacturing, component supply, transportation and other supporting activities.
India Becomes More Important for Stellantis
The Thiruvallur expansion is part of Stellantis’ broader plan to increase the importance of India within its global operations. The automaker has been working to use its Indian engineering and manufacturing capabilities not only for the domestic market but also for overseas markets.
A significant share of future production is expected to be exported, giving India a larger role in Stellantis’ international supply chain. The company has previously highlighted India’s engineering talent, manufacturing capabilities, supplier base and cost competitiveness as factors supporting its long-term plans.
Thiruvallur Could Support Future Vehicle Production
The Tamil Nadu plant has already been linked with Stellantis’ Smart Car programme. The company has developed and industrialised vehicles in India for both Indian customers and international markets, making the country an important location for its product and manufacturing strategy.
The planned production increase could provide additional capacity for future models and export programmes. Stellantis has not disclosed the complete model-wise production plan for the expanded facility, so the exact vehicles that will account for the additional volumes remain unclear. However, greater plant utilisation could give the company more room to introduce or manufacture additional products locally.
Tamil Nadu Strengthens Its Automotive Position
Tamil Nadu is one of India’s major automotive manufacturing centres, with a strong network of vehicle manufacturers, component suppliers, engineering companies and logistics providers. Stellantis’ decision to increase activity at Thiruvallur adds another major manufacturing operation to the state’s already established automotive ecosystem.
For the company, expanding the plant also means building on infrastructure and capabilities that are already available in the region. Higher production could increase business for local suppliers and supporting companies while strengthening Tamil Nadu’s role in vehicle manufacturing and exports.
What the Expansion Means for Stellantis
Taking complete ownership of the Thiruvallur operation gives Stellantis greater control at a time when it is preparing for a significant increase in manufacturing volumes. Moving from around 16,000 vehicles in 2026 to more than 43,000 units in 2028 would represent a substantial expansion of the facility’s output.
The development also shows that Stellantis is looking beyond India’s domestic vehicle market. By increasing production and exports, the automaker is positioning its Indian operations as part of a wider global manufacturing network. The success of the planned expansion will depend on future demand, product launches, export requirements and the company’s investment decisions.
Stellantis’ decision to acquire the remaining HMFCL stake gives it full ownership of the Thiruvallur manufacturing operation in Tamil Nadu. The move comes at an important time, with the automaker planning to increase production by more than 160% between 2026 and 2028 while also expanding the workforce at the facility.
Disclaimer: The information in this article is based on publicly available company statements and media reports available at the time of writing. Production targets, workforce plans, investments and future business decisions may change depending on market conditions and Stellantis’ strategy.
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