Stellantis Middle East and Africa (MEA) commented on its key Full Year 2022 results and showed its progress in implementing the Company’s Dare Forward 2030 ambitious strategic (see below for more) plan for the coming decade, a plan that will drive the Company to leadership in market share, customer experience and energy transition.
In September 2022, Stellantis MEA announced its contribution to the Dare Forward 2030 strategic plan with a bold strategy in the industrial, commercial, product, digitization, aftermarket and purchasing fields.
The MEA region’s ambition is to become the market leader in its area by 2030 with over one million vehicles sold by consolidating its position in the Mediterranean Crown and the French Overseas Territories achieving above 30% market share and by ramping up in Middle East, South Africa and Sub Sahara with a market share Above 12%.
“Middle East and Africa is a wide and promising region with a high growth potential. Stellantis is committed to helping develop the automotive industry across the region and is investing to strengthen its footprint to answer to the evolving mobility needs of its customers. Thanks to the strong engagement of its employees and partners, Stellantis is advancing at full speed in achieving its Dare Forward 2030 Strategic Plan,” said Samir Cherfan, Stellantis Chief Operating Officer for Middle East and Africa.
Middle East and Africa Dare Forward 2030 key milestones since September 2022:
Industrial:
- Algeria: On March 19, 2023, we announced the first wave of investments from Stellantis and its suppliers totaling over €200 million to manufacture four models with start of production of FIAT 500 in December 2023
- Egypt: Framework agreements signed on February 23, 2023 with Egyptian Authorities to set up automobile plant in the country to strengthen our footprint and improve our position in the market.
- Morocco: Announced in November 3, 2022, Investment of over €300 million in Kenitra manufacturing facility to double local production capacity and introduce “smart car” platform to serve the commercial ambition and the region Self-sourcing capacity.
- South Africa: We announced in March 8, 2023 the signature of a Memorandum of Understanding to manufacture vehicles in South Africa. The MoU will Strengthen the position of Stellantis in South African market with the manufacturing project to be completed by 2025
- Turkey: Stellantis will increase production in Turkey, with allocation of “K0” model to Tofaş, in both mid-size light commercial vehicle and passenger car versions, planned for five brands and extending current Doblo and Tipo/Egea production, increasing the Self sourcing for the region.
Commercial:
- Algeria: Start of Sales on March 21, 2023. 15k orders in 2 weeks and 100 000 visitors throughout our various touchpoints
- Middle East: Strong growth potential that we are capturing with a reinforced network while continuously expanding our tailored product portfolio.
- Morocco: Stellantis is the second largest group in the market with around 18% market share in Q1 23. We are working on improving our distribution setup and network structure.
- South Africa: The Company is responding to local needs with an adapted range of products and mobility solutions such as Peugeot Landtrek and Smart car future launches.
- Turkey: On March 1, 2023, a binding agreement was signed announcing that the commercial activities for all Stellantis brands will be consolidated under Tofaş enabling increased business synergies and value creation for all Stellantis brands and segments.
Product:
- 11 launches in 77 markets in 2022 from which 2 new EV and 2 new PHEV models
- In 2022, from Turkey to South Africa crossing the Middle East, North Africa and Sub Sahara, Stellantis delivered on its promise to always better the mobility needs of customers and received the “Car of the Year” award for various models in various markets;
- Innovative and creative marketing campaigns have also been rewarded at some of the most prestigious marketing competitions, such as “Lions” and “Links,”
Digitization
- 10 new platforms launched in Israel, Turkey and GCC
- 3 data management platforms launched in GCC, Israel and Turkey
- The exclusive online launch of Citroen Ami and Alfa Romeo in Turkey were sold out within one hour
- At the launch of Peugeot 408, the whole online stock was sold out in few minutes
Aftermarket
- In 2022, Stellantis had a good dynamic in all MEA markets with +17% sales growth in 2022 vs 2021.
- Independent Aftermarket Manufacturer (IAM) sales increased by 3 times versus 2021
- To support the sales growth, the expansion of multi-brand distribution network and Eurorepar Car Service chain are planned
Purchasing/Sourcing
- Improvement of Stellantis sourcing in Middle East and Africa by 30%
- Kenitra operation in Morocco has increased its local sourcing to 60%.
- Developing mature supplier bases in Morocco and Turkey while expanding with three new bases in Algeria, Egypt and South Africa.
- Towards 2030, Stellantis aims at multiplying by 3 its sourcing in MEA.
For reference, Stellantis Middle East and Africa strategy is to reach by 2030:
- Over 22% market Share
- Over 25 % LEV Mix
- Over 12% Adjusted Operating Margin
- Around 55 launches
- A self sourcing rate above 70%
Dare Forward 2030:
Everyone at Stellantis is focused on providing cutting-edge freedom of mobility for all.
With our global diversity, a unique portfolio of iconic brands and proven operational excellence at the core of our strong foundation, we have crafted a bold strategic plan that paves the way for Stellantis to achieve carbon net zero by 2038. As we work toward delivering on this objective – a benchmark for our industry – we are also intent on being ‘second to none’ in value creation for all stakeholders.
Presented in March 2022, Dare Forward 2030 is a holistic plan built upon three fundamental pillars that will lead us to achievement of our financial ambition of doubling our Net Revenues by 2030 (versus 2021) and sustaining double-digit Adjusted Operating Income margins throughout the decade.
CEO Carlos Tavares Introduces Dare Forward 2030:
Seattle Jay
Tshego Sefolo and Londeka Shezi from Agile Capital – In 2015, after 13 years in the investment industry, Tshego Sefolo went to the market to raise hundreds of millions to launch his own private equity firm, Agile Capital. It took him and his business partner Londeka Shezi, less than a year to secure the investment, for not one, but two private equity firms. Londeka Shezi, is a director at Agile Capital, but her journey started when she completed her articles with Pricewaterhouse Coopers in 2009. She then joined Standard Bank where she worked in the Leverage and Acquisitions team, and went on to become a senior associate at Zico Group.