Stellantis reportedly courts Xiaomi (小米) and Xpeng (小鹏) to invest in Europe — can it be a win‑win?

Deal outline and context

It has been reported that Stellantis is in talks with Chinese EV newcomers Xiaomi (小米) and Xpeng (小鹏) about potential investments into its European operations, including the possible sale of partial stakes in brands such as Maserati (玛莎拉蒂) and the opening of idle European production capacity to Chinese marques. Stellantis, formed by the 2021 merger of PSA and FCA and now the world’s fourth‑largest automaker, houses 14 brands including Maserati, Jeep and Peugeot. Reportedly, the discussions follow Stellantis’s earlier 2023 investment in Leapmotor (零跑), when it acquired roughly 20% of that Chinese EV maker and later set up a reverse‑technology, forward‑channels joint venture.

Why now — overcapacity and strategy strain

The approach reflects pressure from an underperforming European electrification bet. It has been reported that Stellantis swung to a net loss of about €22.3 billion in 2025 after a profit the previous year, and the group says the swing reflects the underestimated cost of an accelerated energy transition. Under its “Dare Forward 2030” plan Stellantis aims to field more than 75 pure‑electric models and sell 5 million BEVs annually, but Europe’s EV uptake has lagged expectations and AlixPartners estimates European factory utilization was only around 45% last year — leaving costly, underused capacity.

What Chinese EV players stand to gain

For Xiaomi and Xpeng, access to Stellantis’s European plants and possibly its sales channels would be attractive: lower transport costs, quicker market presence and avoidance of the €1.5 billion (and 1–3 year) expense AlixPartners estimates is required to shut or overhaul a large plant. Xiaomi has identified Europe as its first overseas market and reportedly plans a 2027 entry; Xpeng already runs a localized production project in Graz, Austria and exported roughly 45,000 vehicles globally last year. Sharing capacity could therefore be mutually beneficial — if both sides can agree on terms.

Geopolitics and regulatory hurdles

But political and regulatory obstacles remain. Deals that deepen Chinese footholds in European manufacturing and distribution are likely to face foreign‑investment screening, scrutiny over technology transfer and the broader backdrop of U.S.‑China strategic competition. Reportedly, Stellantis’s opening gambit is driven by economic logic; will Brussels and national capitals view it the same way? The negotiations are ongoing and outcomes remain uncertain, but the proposal underscores how global automakers and Chinese EV challengers are reshaping cross‑border industrial ties amid an uneven energy transition.