Stellantis is a global automotive group formed in January 2021 after the merger of two major car manufacturers, PSA Group and Fiat Chrysler Automobiles (FCA). With a presence in over 130 countries, Stellantis is one of the largest automotive companies in the world.
In the Middle East and Africa, Stellantis has a strong presence with a wide range of popular brands, including Peugeot, Citroën, DS Automobiles, Fiat, Alfa Romeo, Chrysler, Jeep, and RAM. The company’s regional operations are managed by Stellantis Middle East and Africa (MEA), headquartered in Dubai, United Arab Emirates.
Stellantis MEA is responsible for sales, marketing, and aftersales services for all the Stellantis brands in the region. The company has a network of over 200 dealerships and service centers across the Middle East and Africa, providing customers easy access to high-quality products and services.
This article covers Stellantis’ vehicle sales, market share in the Middle East & Africa, and its competitive position in this region versus its competitors.
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To help readers understand the content better, the following terms and glossaries have been provided.
Gulf: The Gulf includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, and Yemen.
Overseas France: Overseas France includes French Guiana, Mayotte, Reunion, Martinique and Guadeloupe.
Israel Zone: Israel Zone includes Israel and Palestine.
Other: Other excludes Iran, Sudan and Syria.
New Vehicle Sales: Stellentis defines its new vehicle sales as the sales of vehicles primarily by dealers and distributors or, directly by the company in some cases, to retail customers and fleet customers.
Sales include mass-market and luxury vehicles manufactured at Stellantis’ plants and vehicles manufactured by joint ventures and third-party contract manufacturers and distributed under its brands. Sales figures exclude sales of vehicles that it contracts to manufacture for other OEMs.
While vehicle sales are illustrative of Stellantis’s competitive position and the demand for its vehicles, sales are not directly correlated to net revenues, cost of revenues, or other measures of financial performance in any given period.
For a discussion of Stellantis’ vehicle shipments that directly correlate to its Net revenues, Cost Of revenues, and other financial measures, you may visit this article: Stellantis Vehicle Wholesale.
Stellantis Business Strategy In The Middle East & Africa
One of the key aspects of Stellantis’ strategy is establishing a strong manufacturing base in the Middle East & Africa. The company plans to leverage the manufacturing capabilities of its existing facilities in Morocco, Egypt, and South Africa to produce vehicles that cater to the needs of local consumers. The company also plans to explore opportunities to establish new regional manufacturing facilities.
Regarding product offerings, Stellantis plans to introduce new models to the market tailored to the needs of the Middle East and Africa. The company has identified SUVs and pick-up trucks as two segments with significant growth potential in the region and plans to introduce new models in these categories.
Stellantis also plans to invest in technology and innovation to improve the overall customer experience. The company will develop new technologies that enhance vehicle safety, connectivity, and sustainability.
Overall, Stellantis’ strategy for the Middle East and Africa is focused on expanding its regional presence by investing in local manufacturing, increasing its product offerings, and leveraging technology and innovation to improve the customer experience.
How Stellantis Distributes Its Vehicles In The Middle East & Africa
Stellantis distributes its vehicles in the Middle East and Africa region through various channels.
In Turkey, a national sales company distributes Peugeot, Citroën, DS, and Opel brands. In contrast, Fiat, Alfa Romeo, and Jeep brands are distributed through a joint venture with Koc Automotive Group.
In Morocco, a national sales company manages the distribution of Fiat, Alfa Romeo, and Jeep, while local importers handle Peugeot, Citroën, DS, and Opel brands.
In South Africa, Stellantis operates through a national sales company that distributes all its brands.
Stellantis has agreements with local general distributors for all other regional markets, with its regional offices in Cairo and Dubai coordinating operations in Egypt and the Middle East.
How Stellantis Provides Financing To Customers In The Middle East & Africa
Stellantis provides financing to its customers in the Middle East and Africa through various channels.
In Turkey, for example, the activities related to the FCA (Fiat Chrysler Automobiles) brands are carried out through a Tofas subsidiary, which mainly offers financial services to retail customers.
On the other hand, the activities related to the PSA (Peugeot S.A.) brands are carried out by a subsidiary of BPF, which markets a range of retail financing and insurance products in cooperation with TEB Finansman AS, a subsidiary of BNPP PF, and Garanti Bank, a subsidiary of BBVA.
In other markets, Stellantis operates vendor programs with bank partners to provide dealer and retail customer financing access.
For instance, in South Africa, the Stellantis brand sales are supported by Wesbank, covering both wholesale and retail financing under the FCA Finance South Africa brand.
In Morocco, FCA Bank provides financing for the dealer financing activity limited to the FCA brands, while private label agreements with Wafasalaf support sales to retail customers.
Vehicle Sales In The Middle East & Africa
A definition of Stellantis’ vehicle sales is available here: vehicle sales. Stellantis’ total vehicle sales in the Middle East & Africa reached 415,000 units as of fiscal 2022, roughly in line with 2021’s result.
Stellantis has maintained a consistent retail volume in the Middle East & Africa since 2019, demonstrating its competitive position in the region.
Vehicle Sales In Turkey, Morocco, Gulf, Israel, Egypt, etc.
Stellantis’ biggest market in the Middle East & Africa is Turkey, with vehicle sales reaching 250,000 as of fiscal 2022 in this country.
Stellentis sold roughly the same number of vehicles in Morocco and the Gulf, at 34,000 and 26,000 units, respectively, in fiscal 2022.
Vehicle sales from countries in Overseas France and Israel Zone came in at 24,000 units and 22,000 units, respectively, in fiscal 2022.
Egypt used to be Stellantis’ second biggest market. However, sales in this country tumbled to only 18,000 units as of 2022, making it the company’s sixth-largest market.
A noticeable trend is that Stellantis’ vehicle sales in most countries in the Middle East & Africa have remained relatively constant since 2019, highlighting Stellantis’ competitive position in this region.
Vehicle Sales In Turkey, Morocco, Gulf, Israel, Egypt, etc., In Percentage
Vehicle sales from Turkey made up about 60.2% of Stellantis’s total retail volume in the Middle East & Africa as of 2022, up significantly from 53.3% in 2021.
On the other hand, sales from Morocco accounted for 8.2%, while the results from the Gulf formed 6.3%.
Countries in Overseas France and Israel Zone contributed roughly the same sales percentage to Stellantis, at slightly over 5% in 2022.
Egypt made up only 4.3% of the total retail volume in the Middle East & Africa as of 2022, down considerably from 10.2% in 2021.
Market Share In The Middle East & Africa
Stellantis’ market share in the Middle East & Africa reached 12.0% as of fiscal 2022, roughly in line with 11.8% in 2021.
Since 2019, Stellantis’ market share in the Middle East & Africa has slightly increased and remained relatively firm, indicating the company’s strong competitive advantage in this region.
Market Share In Turkey, Morocco, Gulf, Israel, Egypt, etc.
Stellantis’ market share in Turkey reached 31.9% as of 2022, one of the highest among all countries in comparison in the Middle East & Africa and up from 29.7% in 2021.
On the other hand, Stellantis’ market share totaled 20.8% in Morocco, while the figure came in at 33.8% for countries in Overseas France.
Stellantis had a market share of only 2.4% in the Gulf region, the lowest among all countries under comparison in the Middle East & Africa.
Stellantis’ market share in Israel has been relatively stable, while the figures in Egypt have significantly decreased from 25.2% in 2020 to 16.5% as of 2022.
A noticeable trend is that Stellantis’ market share in most countries in the Middle East & Africa has remained solid except for Egypt.
Market Share In The Middle East & Africa Vs Competitors
Stellantis became the second-largest automobile company in the Middle East & Africa after the merger in 2021, only behind Toyota.
As of 2022, Stellantis’ market share in the Middle East & Africa, excluding Egypt and Others, topped 14.9%, while Toyota’s figure reached 20.3%. Coming in third was Hyundai/Kia, whose market share was 13.9% as of 2022, only slightly behind Stellantis.
Renault and Volkswagen had a market share of 9.2% and 6.7%, respectively, in the Middle East and Africa as of 2022. BMW and Daimler were among the automakers with the lowest market share in the Middle East & Africa, at roughly 1% in 2022.
The only U.S. automaker with a substantial market share in the Middle East & Africa was Ford Motor whose figure came in at 4.7% in 2022 and was ranked the sixth largest in this region.
A noticeable trend is that the market share of Toyota and Hyundai/Kia in the Middle East & Africa has steadily risen since 2020, while the results of most European automakers have declined.
For instance, Stellantis’ market share in the Middle East & Africa, excluding Egypt and Other, saw a noticeable decline from 17.1% in 2020 to 14.9% as of 2022. Renault and Volkswagen saw a similar market share decline in this region between 2020 and 2022.
Stellantis’ market share in the Middle East & Africa has remained firm. The company became the 2nd largest automaker by sales volume in this region after the merger.
However, Stellantis’ market share in the Middle East & Africa, excluding Egypt and Other, has slowly decreased and was at a distance second from Toyota as of 2022.
On the other hand, Toyota’s market share in the Middle East & Africa has slowly risen while Stellantis’ figures are in the decline, leading to a significant difference as of 2022.
References and Credits
1. All financial figures presented in this article were obtained and referenced from Stellantis’ quarterly and annual reports, SEC filings, investor presentations, press releases, etc., which are available in Stellantis Investor Relation.
2. Pixabay images.
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