Stellantis (Part 2): Group sales and revenue up sharply H1 '22

Europe and America account for 80% of sales, reliance on N. American full-size trucks increases



Termoli Plant in Italy
Termoli, Italy, where Stellantis-funded ACC (Automotive Cells Company) intends to build its third European battery plant. (Source: Stellantis)

  Stellantis reported a significant improvement in both sales and net income for the group in its H1 2022 financial results released at the end of July (+16.8% and +34.1% y/y, respectively). While global shipments declined due to supply chain restrictions, the company attributed the improvement in sales and revenues to a significant improvement in the vehicle mix and actual sales prices, particularly in North America.

  BEVs (Battery Electric Vehicles) are also being established for mainstay compact car models, the largest segment in Europe, with the percentage of BEVs in Europe reaching approximately 9% in the first half of 2022. The company is proceeding with plans to build five battery plants in North America and Europe. In Europe, the company is actively pursuing alliances and project participation with related industries and organizations for the development and popularization of electrified vehicles and autonomous driving.

  In terms of profit structure, however, the Group's dependence on North America, where high-margin full-size trucks are the mainstay of its operations, has increased, with operating income from the North American market accounting for more than 60% of the Group's total operating income. In Europe, the largest market, which accounts for nearly half (46%) of its global volume, the majority (53%) of sales are from low-margin subcompacts (A/B class). Another concern is that the introduction of BEVs is lagging behind its rivals in the North American market and in the high-end segment.

  The long-term plan "Dare Forward 2030," announced in March, sets an ambitious goal of doubling sales based on the synergistic effects of the merger of PSA and FCA, which has been demonstrated in the past. The question is whether the company will be able to secure a competitive advantage in an industry where products and technologies are rapidly being introduced and innovated by leveraging the strengths and achievements of its brands across numerous markets.

  Part 2 of the Stellantis report summarizes major developments such as those related to business expansion, including battery manufacturing and software development, sales trends by region, and the latest global business performance. In addition, this report includes LMC Automotive's global sales forecast for the Stellantis Group.

Related reports:
Stellantis (Part 1): 75 BEV Models by 2030, Aiming for 5 million Annual BEV Sales (Jul. 2022)
Impact of the Russian-Ukraine War on the Automotive Industry in Europe (May. 2022)
The USMCA and the Mexican Automotive Industry (Apr. 2022)
CES 2022: Major OEMs accelerate electric vehicle push (Feb. 2022)
U.S. battery electric vehicle strategies for GM, Ford and Stellantis (Dec. 2021)
Stellantis (Part 2): Launching large SUVs & pickups in N.A., small SUVs & LCVs in the EU (Apr. 2021)
Stellantis (Part 1): FCA-PSA Business Integration Completed in January 2021 (Mar. 2021)


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