French assets in Stellantis want to go electric earlier than most.

Peugeot is accelerating its transitioning to an all-electric vehicle line-up, which leaves very little room, for any future petrol cars, by the end of this decade.

The French brand, which is part of the Stellantis group, has confirmed that by 2030, it will only market electric vehicles in Europe.

A broader theme is how that decision could impact Peugeot’s international business. Like South Africa.

Will Peugeot retain some petrol engines to power its vehicles by 2030, for intentional markets? In theory, it could be the case. But in practice, it could be challenging.

As part of Stellantis global product strategy, Europe will become Peugeot’s market of choice. Peugeot’s strategy sounds quite clever because of favourable incentives toward electric car ownership and its legacy brand equity in Europe.

Smaller markets, like South Africa, could become a complicated issue. It is improbable that South Africa will have the required investment in electric vehicle charging infrastructure by 2030 – a date at which Peugeot’s product portfolio will be nearly wholly electric.

The French brand’s designers and engineers are working towards a future where four dedicated electric vehicle platforms will underpin all its products. And that leaves very little possibility for petrol engines – unless they are part of PHEV vehicle configurations. And what about the diesel double-cab bakkie question?

To engineer vehicle platforms that can be built as hybrids are complex. PHEVs also forego many of the benefits that full-electric platforms bring – such as a frunk and flat floor.

As Peugeot’s focus on electric drive increases towards its European goal of EV-only by 2030, peripheral markets could suffer from powertrain option starvation.

A specific challenge for Peugeot will be containing cost. It is a value brand in many markets, offering French design flair at modest prices.

Electric vehicles are very expensive, due to the implied R&D costs and components. Reconciling Peugeot’s desire for an all-EV product portfolio and entry-level pricing compatible with its compact car legacy, could prove difficult.

Stellantis may end up leveraging some of its other brands, such as Jeep, and Alfa to keep petrol versions going worldwide on legacy ICE platforms.

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