Stellantis starts producing electric cars in Serbia

Multinational automotive company Stellantis has launched trial production of its Fiat Grande Panda electric car in the Serbian city of Kragujevac, with serial production slated to start in October. With the announced state subsidies, the electric car from the Kragujevac plant could cost around EUR 18,000.

The unveiling of Fiat Grande Panda in Kragujevac was attended by Serbian President Aleksandar Vučić and Carlos Tavares, CEO of the Stellantis automotive group, which was created in a merger of Italian-American carmaker Fiat Chrysler Automobiles (FCA) and the French PSA Group.

Serbia will be the first country in the Balkans to have serial production of electric cars. At the ceremony, however, Vučić warned that the country is lagging behind in installing chargers for electric vehicles and noted that in five years, only electric cars will be produced in Europe.

The modernization and adaptation of the Kragujevac plant for the manufacture of electric cars took two years, with the entire project valued at EUR 190 million. Vučić said that Serbia had provided Stellantis with a EUR 48 million subsidy, adding that next year’s output would contribute 0.5 percentage points to the country’s GDP growth.

Serbia invested EUR 48 million in the project valued at EUR 190 million

About 1,000 workers currently serve the automated lines in the factory, but their number could increase after the start of serial production. The new model should be marketed in Europe, the Middle East, and Africa. The plant will first manufacture the electric Fiat Grande Panda, but the production of a hybrid version is also planned.

Fiat Grande Panda belongs to the B segment of cars, with a length of under four meters. This is also the first vehicle on the market with an integrated charging cable, paired with a standard onboard charger of up to 7 kW, according to media reports.

Serbia to offer subsidies of up to EUR 7,000 euros for the purchase of an electric Panda

The starting price for the fully electric version is below EUR 25,000 euros, but the car could cost around EUR 18,000 with the announced state subsidies, of up to EUR 7,000. The price for the hybrid model will be below EUR 19,000.

Tavares: Stellantis is ready to face the Chinese offensive

Tavares stated that Chinese cars cost 30% less than European ones due to lower production costs, but that Stellantis strives to win over customers with quality and innovation.

Describing the Chinese “offensive” in the automobile market as “big and brutal,” Tavares said that Stellantis is ready to “fight” with its advanced technology and show that it can be a very serious competitor.

Head of the Global Corporate Office of Stellantis Silvia Vernetti described the launch of trial production as a milestone in the company’s operations, adding that the new model manufactured in Kragujevac should help Serbia on the path to sustainable development in the production of such cars.