(Bloomberg) — Stellantis NV said its target to sell only electric vehicles in Europe by the end of this decade depends on fixing the litany of supply-chain problems that have beset carmakers.
The shift to EVs will work only if the region ensures access to enough clean energy, batteries, raw materials and charging infrastructure, Stellantis Chief Executive Officer Carlos Tavares said Tuesday during an event organized by the Financial Times.
Even as automakers build up battery plants, “one can easily anticipate” that the West will become more dependent on Asia for EV parts, he said.
Stellantis seeks to introduce more than 75 fully electric models by the end of this decade, with annual sales of 5 million vehicles. While the carmaker is spending big on the rollout, it’s pledging to maintain strong returns, relying on extra revenue from software and services as well as premium vehicles.
Read more: Stellantis Targets Double-Digit Margins in Costly EV Shift
A key challenge of the shift will be to keep EVs affordable for the middle class, the CEO said. Otherwise, the customer base will shrink — and car companies with it.
“The big race is going to be on cost competitiveness,” he said.
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