Stellantis invests $6 billion in flex-fuel and ethanol vehicles
Stellantis, a major player in the automobile industry, is investing a whopping $6 billion in South America. The company aims to launch hybrid-flex-fuel and plug-in hybrid flex-fuel vehicles, which combine traditional internal combustion engines (ICE) with battery packs and electric motors for better efficiency. This move is part of Stellantis's plan to roll out over 40 cars in the region and develop flex-fuel engines that can run on both petrol and ethanol.
Stellantis's strategic move with electrified flex-fuel engines
Stellantis's development of electrified flex-fuel engines is a smart move, as it allows for multiple models across its portfolio. These engines will be compatible with existing production lines in South America, ensuring cost-effectiveness. New flex-fuel hybrid models are expected to hit the market in late 2024, with some featuring a dual-clutch automatic transmission. Stellantis has a strong presence in the region, holding a 31.4% market share in Brazil and 23.5% across the region.
India's enthusiasm for ethanol-powered vehicles
Stellantis designs, manufactures, and sells automobiles across 14 brands, including Abarth, Citroen, Jeep, Maserati, and Peugeot. Citroen and Jeep have a presence in India, where the government is aiming for 20% ethanol-blended petrol by 2025-26. The 'Roadmap for Ethanol Blending in India 2020-25' states that around 1,016 crore liters of ethanol will be needed to achieve this goal, replacing an equal amount of petrol. Successfully implementing an E20 program could save India about $4 billion annually.