Stellantis Versus Volkswagen In Europe

 

Stellantis Versus Volkswagen In Europe

Stellantis, the group formed by the merger of Fiat Chrysler Automobiles (FCA) and Peugeot Société Anonyme (PSA) was created to respond to the growing challenges of the global automotive industry. The set of brands united by the two big houses was better positioned than its rivals in Europe, North America, and South America and, according to the objectives, could easily increase its presence in the Asian markets.

The battle between these two giants wasn't just about volume, it was about profitability as well. The challenge they face is more or less the same: to move from the internal combustion engine sector to the electric car sector, but without affecting profits. While there are issues to address – Volkswagen needs to work on its software and Stellantis needs more models – they have generally managed to maintain their strong positions in their respective markets.

However, a growing gap can be seen in their most important trading area: Europe. According to data on new car registrations provided by JATO for 28 European countries (which, unlike the ACEA, do not include Iceland and Bulgaria), Stellantis is losing ground not only to newcomers such as and the Chinese brands, but also to VW.

When Stellantis launched over two and a half years ago, its share in the European passenger car market was 21.2 percent. It was just over 4 points less than that held by the Volkswagen Group. Although the new group was the outright leader in Italy and France and had an important position in Spain and other medium-sized markets, its rival still dominated Germany (Europe's largest car market) the United Kingdom (the second) and was a leader in many central, northern and eastern markets.

The gap between the two averaged 4.7 points between January 2021 and June 2022, when VW started growing faster. Since then, the average gap has widened to 8.6 points and continues to grow. In July 2023, Volkswagen Group recorded the highest monthly market share in two years and surpassed Stellantis by 11.9 points. This is the largest gap between the two groups since the latter was founded and could precede other even higher gaps in the coming months.

As both companies try to catch up with their electric offerings, it is clear that battery-powered cars are selling best in Germany, while the vast majority of European consumers continue to demand petrol-powered cars. Between January and July this year, Volkswagen Group registered 244,000 new electric cars in Europe, enabling it to lead this important growth sector. Volume increased by 58 percent, thus taking its market share from 21 percent in January-July 2022 to 22.5 percent this year.

The German giant maintained its lead over Tesla, which more than doubled its registrations, but took second place with an 18.7 percent share in the Battery Electric Vehicle (BEV) market. Stellantis, on the other hand, recorded a modest 11 percent increase in BEV registrations, reaching 142,600 units, equal to a 13.2 percent share.

Between those periods it lost 4.3 points of share. While Volkswagen offers eight electric SUVs out of 14 different electric models, Stellantis offers four SUVs out of 24 electric models. Even on the petrol side (which still holds 58 percent of registrations in Europe), the gap is significant: 54 models available (25 SUVs) from VW against 46 (21 SUVs) from Stellantis. Will the gap continue to grow? Or will Stellantis catch up with more SUVs and fully electric vehicles? The author of the article, Felipe Munoz, is an Automotive Industry Specialist at

In the highly competitive European automotive environment, the two automotive giants Stellantis and Volkswagen are fighting a fierce battle for supremacy. These automotive titans have a rich history, deep-rooted heritage and an unwavering commitment to innovation, making their rivalry one of the most interesting stories in the industry. In this article, we dive into the Stellantis versus Volkswagen battle in Europe and explore their strengths, market presence and strategies for success.

Formed in 2021 through the merger of PSA Group and Fiat Chrysler Automobiles (FCA), Stellantis has emerged as a formidable player on the European automotive scene. This automotive juggernaut brings together iconic brands such as Peugeot, Citroën, Fiat, Jeep and Alfa Romeo to name a few. With this diverse portfolio, Stellantis boasts a strong presence in various vehicle segments, from compact cars to SUVs and electric vehicles. Stellantis, European car market, PSA Group, Fiat Chrysler Automobiles, iconic brands, diverse portfolio, electric vehicles.

Volkswagen, on the other hand, has long been a dominant force in Europe. The Volkswagen Group, which includes brands such as Volkswagen, Audi, Porsche and Škoda, consistently delivers high-quality cars that appeal to European consumers. Volkswagen's commitment to innovation, especially in the area of ​​electric mobility, has further strengthened its position in the European market. Volkswagen Group, European car market, high quality vehicles, electric mobility, innovation.

The battle between Stellantis and Volkswagen is not limited to the number of brands under their umbrellas. It expands on market share and consumer preferences. The two companies vied for first place in terms of sales and market dominance.

According to the latest data, the Volkswagen Group maintains a slight lead in terms of market share, but Stellantis is hot on its heels. Stellantis is quickly gaining ground with its strategic alliances and focus on electric vehicles. Competition is fierce and both giants are launching new models to capture the hearts of European consumers. Market share, consumer preferences, strategic alliances, electric vehicles, European consumers.

One critical battleground in this rivalry is the race for sustainability. European consumers are increasingly environmentally conscious, and both Stellantis and Volkswagen are well aware of this trend. Major investments are being made in electric and hybrid technologies as well as sustainable manufacturing practices to meet strict emissions regulations.

Stellantis has announced ambitious plans to electrify its entire range by 2025, while Volkswagen aims to become the electric vehicle (EV) market leader with its ID. series. Competition in this space is driving innovation, resulting in cleaner and greener vehicles for European consumers. Sustainability, electric and hybrid technologies, emission regulations, EV market, environmentally friendly vehicles.

As Stellantis and Volkswagen continue their battle for European supremacy, the ultimate beneficiary is consumers. Competition drives innovation and pushes both companies to raise the bar in terms of quality, sustainability and technology.

The Stellantis versus Volkswagen battle in Europe is a fascinating saga of two automotive giants with rich histories and promising futures. The European automotive market will continue to evolve and these titans will shape its landscape for years to come. Whether you're a fan of Peugeot or Volkswagen, one thing is clear – the future of the European automotive industry is bright, dynamic and full of exciting possibilities. European car market, innovation, quality, sustainability, technology, car giants, market development.