Stellantis sales dip in Q3 as European gains fail to offset US slump

Stellantis and Tata Motors (TMPV) signed an agreement to develop and manufacture vehicles in India for over 50 global markets. TMPV will provide Stellantis with access to its technology and vehicle architecture. The vehicles will be built by their joint venture, Fiat India Automobiles Private Limited (FIAPL), in Pune, India.

Stellantis (STLA) shares fell 2.23% after reporting a 1% year-over-year drop in Q3 shipments to 1.3 million vehicles, a 19% decline from Q2. The decline was driven by a 12% drop in North America, offset by a 10% increase in Europe. The company attributes the North American drop to planned production cuts affecting Jeep models, while European growth was driven by battery-electric vehicle sales.

European automakers, including Stellantis and Renault, launched new models at the Paris car show to counter Chinese competition. The EU and China agreed to cap Chinese hybrid vehicle imports at 350,000 annually, affecting BYD, Chery, and SAIC's MG. Chinese brands are expanding in Europe, with some planning local production. Volkswagen reported a 14.3% drop in Q3 deliveries, while Stellantis and Renault plan to boost EV production.

The 2026 Paris Motor Show highlights intense competition between European and Chinese automakers. Chinese brands, including BYD and Chery, are expanding their presence with 60 new models. The EU and China agreed to reduce Chinese hybrid imports by over 50%, impacting major Chinese automakers. Volkswagen and Stellantis are countering with new models and investments. Chinese firms are also shifting production to Europe to mitigate trade restrictions.

Stellantis (STLA) shares rose 2% pre-market after CEO Antonio Filosa dismissed speculation of a Europe-U.S. split, calling it 'not plausible.' The company shipped 1.6M vehicles in Q2, up 10% YoY. Stellantis announced a partnership with Leapmotor for small EVs and unveiled six concept cars. Analysts have a Moderate Sell rating but a $5.98 avg. price target, implying 33% upside.

Iren shares rose 5% after signing a multi-year AI cloud services deal with Anthropic, according to The Information. CCC Intelligent Solutions shares surged 9.5% on reports of a potential buyout by GTCR and Elliott Investment Management. Stellantis shares climbed following EU-China talks on hybrid car exports. Micron Technology shares fell 2.1% due to competition and union demands. GoDaddy shares declined after a downgrade by RBC Capital Markets.