Transition from thermic to electric in Light Commercial Vehicles: Stellantis ProOne pricing and product actions to achieve EU CO2 targets

Context: Stringent shifts in EU CO2 regulations, driven by climate change and rising pollution concerns, are pushing the European automotive industry towards sustainability. The European Union has set ambitious targets for reducing carbon emissions, including a 100% reduction in CO2 emissions from new cars and vans by 2035. These regulations are part of a broader strategy to achieve carbon neutrality by 2050. In a time where the market attractiveness of thermic vehicles remains high among buyers, companies like Stellantis must navigate the complex transition to mandatory battery electric vehicles (BEVs) adoption. This transition is further complicated by the need to balance consumer demand for traditional vehicles with the regulatory push towards zero-emission alternatives. The automotive industry faces significant challenges, including the high costs of BEVs technology that put pressure on OEM (Original Equipment Manufacturer) profitability and on competitive price offering versus ICE (Internal Combustion Engines). Additionally, the need for extensive charging infrastructure, the competitive pressure from Chinese BEV producers and the instability of European government incentives pose an additional threat to BEV transition. The study situates Stellantis within this dynamic landscape, focusing on its commercial vehicles business unit (Pro One) BEV strategy and performance, and juxtaposing it to the main European competitors behaviour. Additionally, the study explores the growing threat posed by Chinese BEV manufacturers entering the European market and their overall impact on the region automotive scenario. Objectives: The research aims to identify Stellantis Pro One strategies to cope with mandatory EU CO2 standards through product innovation, specific marketing and sales strategy and leverage on pricing actions. The strategy is completed by dealer-focused programs and sales team training designed to boost Light Commercial Vehicles (LCV) BEV adoption. Finally, the thesis focuses on forecasting the automotive industry's future, considering the balance between ICE and BEV, while offering insights into pathways toward a sustainable future. Tools: The study takes into consideration both online sources and confidential material present in Stellantis database, with the goal of achieving an up-to-date context reconstruction and analysis.