Will Stellantis’s investment in Hungary boost its electric drive module production? Yes, Stellantis plans to enhance its production capacity of electric drive modules with a €103 million investment in its Hungarian plant, starting in late 2026.
In a decisive move to accelerate its electric vehicle (EV) production, Stellantis has announced a substantial investment aimed at expanding its manufacturing capabilities in Hungary. The automaker’s €103 million ($110.9 million) commitment is set to significantly increase the production capacity of electric drive modules (EDMs) at its Szentgotthard plant, with the implementation commencing in late 2026.
This investment is not only a financial injection into the Hungarian facility but also incorporates grants and contributions from the Hungarian government, underscoring a collaborative effort to bolster the EV industry. It’s a strategic step that aligns with Stellantis’s ambitions to cement its position in the rapidly growing electric vehicle market.
The Szentgotthard plant will focus on manufacturing EDMs destined for vehicles underpinned by Stellantis’s dedicated battery electric vehicle-centric STLA platform. This platform is integral to the company’s future lineup of electric vehicles, promising enhanced efficiency and performance.
In addition to the Hungarian plant’s expansion, Stellantis boasts EDM production capabilities at other global sites. Its Tremery-Metz facility in France and the Indiana plant in the United States are already operational, and further expansion is on the horizon with the Mirafiori complex in Italy gearing up to escalate production of next-generation electrified dual-clutch transmissions for hybrid and plug-in hybrid vehicles within the year.
Stellantis’s global production footprint for EDMs is a testament to its commitment to electrification across various markets. This network of facilities highlights the automaker’s strategy to diversify its production lines and meet the increasing demand for electric vehicles.
As Stellantis progresses with its electrification plans, the Hungarian investment represents a significant milestone. The EDMs produced will be crucial components in the company’s future electric offerings, providing the driving force for a new era of cleaner, more sustainable vehicles.
Stellantis’s increased focus on EDM production is reflective of the broader automotive industry’s shift toward electric vehicles. The move is in response to growing consumer demand for environmentally friendly transportation options and the tightening of global emissions regulations.
In essence, Stellantis’s latest investment in Hungary is more than just a capital commitment. It signifies a forward-thinking approach to the development and production of electric vehicles, ensuring the automaker’s readiness to lead in the EV market. With this, Stellantis continues to drive innovation and sustainability forward, solidifying its role as a key player in the vehicle electrification race.
What’s your take on this? Let’s know about your thoughts in the comments below!