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Stellantis (STLA) to Increase Hybrid Model Line-Up in Europe

Zacks Equity Research
·3-min read

Stellantis N.V. STLA is rapidly responding to the demand surge in Europe for hybrid models, particularly those with the latest eDCT advanced hybrid technology. This year, the company will offer 30 hybrid models and aims to introduce six more by 2026. These hybrids provide an exceptional driving experience with lower CO2 emissions at a more affordable price than fully electric and plug-in hybrid vehicles.

Stellantis has achieved a 41% rise in sales of hybrid models year to date in the EU30 region in 2024 compared with the same period in 2023. The company expects further growth with upcoming launches. The automaker is the sales leader for low-emission vehicles, including battery electric, fuel cell, plug-in hybrid and hybrid models in the EU30 for A and B segments and light commercial vehicles.

Stellantis-brand hybrid vehicles that are currently available or coming soon in Europe include models from Alfa Romeo, Citroën, DS, Fiat, Jeep, Lancia, Maserati, Opel/Vauxhall and Peugeot.

Hybrid vehicles leverage a multi-energy manufacturing footprint to cater to various customer preferences, driving needs and vehicle sizes. Hybrid-powered vehicles capture and store kinetic energy during braking and deceleration, which is reused during acceleration for more efficient driving.

Per Sébastien Jacquet, deputy chief engineering officer of Stellantis, the company is ramping up its hybrid solution with the new eDCT technology, which is being implemented across a wide range of models to make it accessible to more customers. This technology allows the internal combustion engine to remain off during low-speed driving, reducing CO2 emissions and fuel consumption.

Most Stellantis-brand hybrid vehicles in Europe now feature the eDCT technology and its integrated 21-kW electric motor, providing a smooth driving experience and enabling pure electric driving in city conditions.

The eDCT-based hybrid powertrain system is designed for optimal fuel efficiency, achieving up to a 20% reduction in CO2 emissions compared to a combustion engine with an automatic transmission. The eDCT concept can also support plug-in EVs due to a high commonality of components.

Stellantis produces hybrid vehicles in more than 70% of its plants in Europe, with eDCT production in Metz, France, and Turin, Italy, through the eTransmissions joint venture. The combined production capacity is more than 1.2 million eDCTs per year.

STLA is investing more than €50 billion in electrification over the decade to meet the Dare Forward 2030 targets of a 100% passenger car battery EV sales mix in Europe and 50% in the United States by 2030. To achieve these targets, the company is securing approximately 400 GWh of battery capacity with support from battery manufacturing plants in North America and Europe. Stellantis aims to become a carbon net zero corporation by 2038, with minimal compensation for remaining emissions.

Zacks Rank & Key Picks

STLA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Suzuki Motor Corporation SZKMY, Renault SA RNLSY and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for RNLSY’s 2024 sales and earnings suggests year-over-year growth of 20.78% and 62.43%, respectively. EPS estimates for 2024 and 2025 have improved 6 cents and 14 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 3 cents in the past 60 days. The same for 2025 has moved up 20 cents in the past 30 days.

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Stellantis N.V. (STLA) : Free Stock Analysis Report

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