Stellantis’ $1.2B China EV Deal Gets Nod For Retail Traders: ‘A Step In The Right Direction’

• Stellantis said the Dongfeng Peugeot Citroën Automobile joint venture is expected to begin producing vehicle models at its Wuhan plant from 2027.
• Stellantis also added that these products will be aimed at China and exported to global markets as a part of Peugeot’s international growth objectives.
• The vehicle models will be based on the concept cars showcased by Peugeot at the 2026 Beijing auto show, the company stated

Shares of Stellantis N.V. (STLA) drew investor attention premarket on Friday after the automaker extended its collaboration with its Chinese partner, Dongfeng Group, to produce all-new Peugeot and Jeep new-energy vehicles in China starting in 2027 under a $1.2 billion initiative.

The announcement came amid mounting pressure on global legacy automakers to adapt to the EV transition.

At the time of writing, the U.S.-listed shares of Stellantis declined over 2% premarket on Friday, snapping two consecutive sessions of gains. So far this week, they have gained over 1%. 

Stellantis and Dongfeng also inked a non-binding memorandum of understanding to further boost their collaboration with the scale, expertise and R&D capabilities in the auto industry, the company noted.

"With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love. We look forward to this project and to collaborate even more in the future,” said Antonio Filosa, Chief Executive Officer at Stellantis.

Terms Of The Deal

As per the agreement, Stellantis said the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture is anticipated to make vehicle models at DPCA's Wuhan plant from 2027, starting with two all-new Peugeot-branded energy vehicles. The vehicle models will be based on the concept cars Peugeot showcased at the 2026 Beijing auto show.

Stellantis also added that these products will be aimed at China and exported to global markets as a part of Peugeot’s international growth objectives.

The company noted that the combined project investment totals to RMB8 billion (about $1.2 billion) of which, Stellantis is expected to contribute about 130 million euros ($151.3 million). The investments will be aided by the automotive industrial policies of the Hubei province and the Wuhan municipality, the company stated.

“Through the signing of this strategic cooperation, by integrating Hubei’s industrial strengths, Stellantis’ global layout advantages and Dongfeng’s intelligent electric vehicle technologies, a new path featuring complementary strengths and win-win outcomes for all parties has been forged. This will undoubtedly inject strong momentum into DPCA’s transformation,” said Qing YANG, Chairman at Dongfeng Group.

Why China Still Matters For Stellantis

China remains the world's largest EV market and a key battleground for global automakers competing against fast-growing domestic players like BYD and NIO.

Stellantis has been struggling with competition from peers such as Volkswagen AG and BYD, according to the report. In March, the company executives also met the management of Xpeng and Xiaomi to discuss overhaul options.

For Stellantis, this partnership with Dongfeng will offer access to local manufacturing scale and EV technology. 

What Does Retail Think Of STLA?

On Stocktwits, retail sentiment surrounding the stock has improved to ‘neutral’ from ‘bearish’, while message volume remained ‘low’ in the past 24 hours.

One user on Stocktwits said collaboration with Dongfeng is a step in the right direction for Stellantis

Shares of Stellantis NV have declined more than 31% so far this year.

(RMB1 = $0.15)
(€1 = $1.16)

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