Competition, especially in Europe, adds further pressure. Stellantis, alongside Renault, is highly exposed to growing competition from Chinese manufacturers in the European market. This includes the rise of affordable Chinese electric vehicles (EVs) and increased consumer preference for hybrid models from Korean manufacturers. Stellantis' ability to compete in the luxury market also remains a challenge, particularly when compared to its German peers, as it seeks to revive its luxury brand presence amidst intensifying competition from pure EV makers.