Recently, Stellantis Group announced its full-year financial performance for 2023, with a net revenue of €189.5 billion, representing a 6% year-on-year increase. Net profit reached €18.6 billion, up 11% year-on-year, while industrial free cash flow surged by 19% to €12.9 billion. Sales of pure electric vehicles and low-emission models increased by 21% and 27% respectively year-on-year, with plug-in hybrid models and low-emission models ranking first and second in the US market, respectively.
To support the overall sales growth of the group and the electrification process in the North American market, the group will launch 18 pure electric vehicles in 2024, bringing the total to 48 pure electric vehicles in the market by the end of 2024. The sales starting price of the new Citroën e-C3 model at €23,300 makes it the most competitively priced B-segment electric vehicle manufactured in Europe.
In July 2023, the group introduced its "STLA Medium pure electric mid-size car platform" as part of its four pure electric vehicle platforms. The Peugeot E-3008 model, based on this platform, achieves the best-in-class and up to 700 kilometers of range. In January 2024, the group launched the "STLA Large pure electric large car platform," which offers an 800-kilometer range and exceeds customer expectations. The STLA Large platform is a highly flexible pure electric vehicle native platform that supports future global models in the D and E segment markets and can accommodate power systems including hybrid and traditional internal combustion engines.
Meanwhile, the group has secured the supply of raw materials until 2027 and signed a supply agreement with CATL for lithium iron phosphate battery cells and modules, further expanding the group's battery chemistry composition.
Stellantis Group and Hon Hai Precision Industry Co., Ltd. (Foxconn) have established a joint venture named "SiliconAuto" with a 50:50 ratio, which will provide chip design and sales services to various new vehicle platforms in the automotive industry starting from 2026. In 2023, Stellantis Group's venture capital fund "Stellantis Ventures" invested in six startups and signed 49 commercial agreements with various startups.
The group's overall market in the "Middle East and Africa, South America, China, India, and Asia-Pacific" regions, excluding Europe and North America, maintained continuous performance growth, with a total net revenue growth of 13% year-on-year in these regions in 2023. In the Chinese market, the group invested approximately €1.5 billion in the electric vehicle-focused startup Leap Motor and holds about 21% of Leap Motor's shares, playing a leading role in supporting Leap Motor's growth in the Chinese market and global expansion. In addition, the two parties will establish a joint venture named "Leap International," in which Stellantis Group will hold 51% of the shares, dedicated to promoting the global expansion of Leap Motor. The collaboration with Leap Motor fills a gap in Stellantis Group's business model, and the group will benefit from Leap Motor's competitiveness in both the Chinese and overseas markets.
Outlook and Forecast for 2024: Building on the momentum of the group's performance in 2023, the group's management notes several favorable environmental factors that could contribute to revenue growth in 2024. These include reduced supply chain and logistics obstacles, stable interest rates, the potential for interest rate reductions, and positive factors resulting from the expected expansion of the group's product lineup. Despite macroeconomic uncertainties, the group remains committed to achieving double-digit adjusted operating profit margins and positive industrial free cash flow in 2024.
