Stellantis Sales And Market Share In North America – U.S., Canada, And Mexico

Pedestrians crossing. Pixabay image.

Stellantis is a multinational automotive corporation formed in January 2021 through the merger of the world’s two largest automakers, Fiat Chrysler Automobiles (FCA) and Groupe PSA.

The name “Stellantis” is derived from the Latin word “stello,” which means “to brighten with stars,” and symbolizes the ambition of the new company to become a global leader in the automotive industry.

This article covers Stellantis’ vehicle sales and market share in North America, as well as its competitive position in the U.S. versus competitors.

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Investors interested in Stellantis’ global vehicle sales and sales by country may find more resources on this page: Stellantis global sales and sales by country.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

North America Segment: The North America segment is one of Stellantis’ reportable segments.

According to the 2023 annual report, Stellantis operates primarily in the U.S., Canada, and Mexico in the North American region. Its brand names in this region include Jeep, Ram, Dodge, Chrysler, Fiat, and Alfa Romeo.

Stellantis has manufacturing plants in the U.S., Canada, and Mexico in the North American region.

New Vehicle Sales: According to the 2023 annual report, 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.

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Stellantis Business Strategy In North America

Stellantis’ business strategy in North America is focused on leveraging its diverse brand portfolio to increase market share and profitability while promoting sustainable mobility. The company’s North American region includes the United States, Canada, and Mexico, and it is home to some of the most iconic brands in the automotive industry, including Jeep, Ram, Dodge, and Chrysler.

One of Stellantis’ key objectives in North America is to expand its presence in the SUV and pickup truck segments, which are among the region’s most profitable and fastest-growing segments. The company invests heavily in research and development to introduce new models and improve existing ones to achieve this goal. For instance, Jeep has recently launched the all-new Grand Wagoneer, a luxury SUV that aims to compete with high-end models from other automakers.

Another aspect of Stellantis’ business strategy in North America is to increase its focus on electric and hybrid vehicles. The company has announced plans to introduce more than 30 new electrified models across its brand portfolio by 2025, including battery electric, plug-in hybrid, and hybrid vehicles. This move aligns with the company’s commitment to sustainable mobility and reducing its carbon footprint.

Moreover, Stellantis is also committed to improving customer satisfaction and loyalty by offering innovative technologies and services. For instance, the company has partnered with Amazon to offer in-car delivery services for Amazon Prime members, allowing them to have packages delivered directly to their vehicles.

Overall, Stellantis’ business strategy in North America is focused on leveraging its diverse brand portfolio, investing in research and development, promoting sustainable mobility, and enhancing customer satisfaction to increase regional market share and profitability.

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How Stellantis Distributes Its Vehicles In North America

According to the 2023 annual report, Stellantis mainly sells its vehicles to dealers in its dealer network for retail consumers and fleet customers in North America.

Fleet sales in the commercial channel are generally more profitable than sales in the government and daily rental channels, as they offer customized vehicles with more optional features and accessories.

However, orders in the commercial channel are usually smaller than those made in the daily rental channel. Fleet sales in the government channel are typically more profitable than fleet sales in the daily rental channel, mainly due to the product mix included in each respective channel.

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How Stellantis Provides Financing To Customers In North America

According to the 2023 annual report, on November 1, 2021, Stellantis acquired First Investors Financial Services Group in North America, which has been renamed to Stellantis Financial Services US Corp. This acquisition will enable Stellantis Financial Services U.S. to provide financing options to customers and dealers in the near-to-medium term, including retail loans, leases, and floorplan financing.

However, Stellantis will continue to work with independent financial service providers like Santander Consumer USA Inc. (SCUSA) to provide financing options to dealers and retail customers in the U.S. Under the SCUSA Agreement, SCUSA will continue to provide wholesale and retail financial services to dealers and retail customers in the U.S. under the Chrysler Capital brand name. The SCUSA Agreement was amended and extended through 2025, allowing SCUSA to complement Stellantis Financial Services U.S.

As of December 31, 2023, SCUSA provided wholesale lines of credit to approximately 9 percent of the current 2,600 Stellantis dealers in the U.S., while Ally provided 29 percent. On the other hand, starting in April and ended on Dec 31 2023, Stellantis Financial Service U.S. has provided wholesale lines of credit to approximately 3 percent of the 2,600 dealers in the U.S.

For the 2023 sales year, approximately 76.7 percent of the retail vehicles sold to U.S. retail customers were financed or leased. This figure was 80.4% for the 2022 sales year, according to the 2022 annual report.

Of those financed or leased retail sales, SCUSA, Ally, and Stellantis Financial Services U.S. (second full year of operations) market share represented 23.0 percent, 12.9 percent, and 11.3 percent, respectively. The market share figures were 30.5 percent, 13.4 percent, and 1.2 percent, respectively, in 2022.

Stellantis has a private label agreement with Banco Inbursa Group to provide dealer and retail customer financing programs in Mexico. In Canada, Stellantis’ customers are served by cooperation agreements with main local banks providing retail financing and leasing.

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Vehicle Sales In North America

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The definition of Stellantis’ new vehicle sales and North America segment is available here: new vehicle sales and North America segment.

Stellantis’ total new vehicle sales in North America topped 1.78 million units in fiscal year 2023, in line with the 1.79 million units in fiscal year 2022, but down 11% over the 2 million units in 2021.

Since 2018, Stellantis’ new vehicle sales in North America have signficantly declined, down from 2.5 million units in 2018 to 1.8 million units as of 2023, representing a drop of 28% in five years.

The company attributed the vehicle sales decrease in North America in 2022 compared to 2021 to the continuing production headwinds due to supply chain issues, pricing actions, and headwinds driven by inflation. However, production, supply chain and semi-conductor concerns eased across the industry in 2023.

Stellantis has stated that its vehicle sales and profitability in the North American region are generally weighted towards larger vehicles such as utility vehicles, trucks, and vans, consistent with overall industry sales trends in the North American segment, which have become increasingly weighted towards utility vehicles and trucks in recent years.

Although the U.S. industry sales, including medium and heavy-duty vehicles, in addition to commercial vehicles, were up approximately 1.8 million units or 12.4 percent in 2023 from 14.1 million units in 2022, the increase did not help to boost Stellantis’ vehicle sales in the region.

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Vehicle Sales In The U.S., Canada And Mexico

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The definition of Stellantis’ new vehicle sales is available here: new vehicle sales.

The U.S. is Stellantis’ largest market under the North America segment. The company sold over 1.5 million vehicles in the U.S. in fiscal year 2023, which was roughly in line with the result in 2022.

On the other hand, Stellantis’ retail sales in Canada totaled 158,000 units in fiscal year 2023, while that in Mexico totaled 97,000 in the same period.

Stellantis’ vehicle sales have significantly declined in the U.S. and Canada since 2018.

For example, Stellantis saw its vehicle sales plummeting from 2.2 million units in 2018 to 1.5 million units as of 2023, representing a decline of over 30% in five years.

A similar trend occurs in Canada. Sales in this country have declined from 225 thousand vehicles in 2018 to 158 thousand as of 2023, down 42% over the five years.

In contrast, Stellantis’ sales in Mexico have remained relatively firm since 2018. However, sales in 2023 increased considerably to 97 thousand units, up 31% over 2022. The 2023 sales result even surpassed the pre-COVID levels.

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Vehicle Sales In The U.S., Canada And Mexico In Percentage

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Stellantis’ U.S. sales have made up over 80% of its total retail volume in North America in all periods shown. This figure reached 85.7% in fiscal 2023, down slightly from the 86.4% in 2022.

On the other hand, Stellantis’ sales in Canada has represented less than 10% of its total retail volume in North America, while Mexico has contributed an average of 4% over the last three years.

Mexico is the only country in which Stellantis has seen the percentage of its sales increasing over the years. The ratio reached 5.4% as of 2023, the highest ever measured.

For other countries such as the U.S. and Canada, the percentage of sales with respect to the total has been steadily on the decline.

For example, Stellantis’ sales contribution from the U.S. has decreased from 88.2% to 85.7% in the last six years, while the ratio for Canada has remained stable at 9%.

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Market Share In North America

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The definition of Stellantis’ North America segment is available here: North America segment.

Stellantis’s total market share in North America reached 9.4% as of fiscal year 2023, down slightly from the 10.7% in 2022, according to the 2023 annual report.

Since 2018, Stellantis’ market share in North America has significantly decreased, down from 12.0% in 2018 to 9.4% as of 2023.

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Market Share In The U.S., Canada And Mexico

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Stellantis’ market share in the U.S. has decreased from 12.6% in 2018 to 9.6% as of 2023, while its market share in Mexico has climbed from 5.1% to 6.8% for the same period.

Stellantis’ market share in Canada has remained relatively flat at 11% since 2018. However, this figure plummeted to 9.5% in fiscal year 2023, when vehicle sales in this country reached a record low of 158 thousand units in the same year.

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Market Share Vs Competitors In The U.S.

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Stellantis, with a market share of 9.6% in fiscal year 2023, was the fifth-largest U.S. car manufacturer, following GM, Toyota, Ford, and Hyundai/Kia, according to the 2023 annual report.

Stellantis’ main competitors in the U.S. are General Motors, Toyota, and Ford Motor.

GM has the largest market share in the U.S., topping 16.3% in fiscal 2023, while Toyota captured the second spot as one of the largest automobile players in the U.S. whose market share came in at 14.2% in the same year.

Ford’s market share in the U.S. reached 12.6% as of 2023, making it the third-largest automobile company in this region.

In fiscal year 2023, Hyundai/Kia, with a market share of 10.4% in the U.S., overtook Stellantis as the fourth-largest automobile manufacturer in this country. Stellantis was ranked fifth in fiscal year 2023.

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Conclusion

To recap, Stellantis sold 1.8 million vehicles in North America in 2023, representing a decrease of 11% from 2021 but in line with 2022 result.

Despite the increase in the industry sales in the U.S. in 2023, it did not help Stellantis to gain significant sales and market share in the North American region. Instead, its new vehicle sales and market share declined.

In fiscal year 2023, Stellantis’ share of the North America market tumbled to just 9.4%, a considerable decline from the previous year.

This places the company fifth among the major automakers operating in the region, behind General Motors, Toyota, Ford, and Hyundai/Kia.

Overall, Stellantis’ solid sales and market share performance in North America in 2023 suggest that the company is well-positioned to compete in this important market in the coming years.

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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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