Stellantis has topped Volkswagen, Mercedes-Benz, and BMW to become Europe’s most profitable automaker in 2023. The holding company that owns Peugeot, Citroen, Alfa Romeo, Jeep, Dodge, Ram, Chrysler, and more, recorded 24.34 billion Euros in operating profit in 2023.

Data compiled by Automotive News Europe puts Stellantis’ operating profit well ahead of the Volkswagen Group (22.6 bil Euros), BMW (18.48 bil Euros), Mercedes-Benz (19.66 bil Euros).

Of the quartet of European manufacturers mentioned above, only Mercedes-Benz saw a reduction in profits, down 3.9% from 20.46 billion in 2022, mainly due to poor performance in China (which contributes 30% of sales) and slow sales of fully electric Mercedes-Benz EQ models.

Stellantis achieved its stellar financial performance despite exiting China last year amidst an intense price war. Stellantis’ Chinese assets has since been sold to its former local partner Dongfeng.

Unlike its German peers, Stellantis line-up of battery EV (BEV) models are smaller, lighter, lower cost, based on existing internal combustion engine models. These models are also facing less price pressure in Europe.

For private users, its Peugeot e-208 and Fiat 500e are its segment’s best sellers in Europe.

However, Stellantis’ BEV strategy is heavily focused on light commercial vehicles, since companies have a greater incentive to reduce their carbon footprint, and are less concerned about resale values. Stellantis controls over 30% of Europe’s BEV light commercial vehicles.

Unlike VW, which relies heavily on Europe and China, Stellantis derives more than half of its profits from North America, which in current market conditions, is a better place to be in than China as its unaffected by price wars.

Closer to home, Stellantis will be re-launching the Peugeot brand in Malaysia by the middle of this year, starting with the locally assembled (CKD) Peugeot 408 and Peugeot Landtrek.

Lower-priced CKD Citroen models at the entry-Japanese B-segment models, as well as locally assembled Leapmotor battery EV models are also confirmed, but no timeline has been announced.

Alfa Romeo was also mentioned by Stellantis Malaysia, but the iconic Italian marque will remain as a niche brand.