Carmaker Stellantis reported on Tuesday a 26 per cent jump in net profit last year, with strong demand for its Jeeps and Chrysler minivans in North America making up for a slump in European sales.

Profits for the group forged from the merger of PSA of France and the US-Italian firm Fiat-Chrysler hit €16.8 billion, as higher sale prices helped counter higher material costs and supply constraints.

The company sold 1.8 million vehicles in North America, with the Jeep Grand Wagoneer and Compass models its most popular along with the workhorse Pacifica minivan.

But European unit sales fell eight per cent to 2.6 million, with declines seen for its mainstay Peugeot, Citroen and Opel brands – reflecting the overall drop in European new vehicle registrations to a three-decade low last year, largely due to component shortages since the COVID pandemic disruptions.

Finance director Richard Palmer told a press conference that prospects for car markets would improve this year, with the company aiming for annual revenues of €300 billion by 2030, after the €180 billion booked last year.

Prospects for car markets would improve this year, with the company aiming for annual revenues of €300 billion by 2030, after the €180 billion booked last year- Finance director Richard Palmer

Like its rivals, Stellantis is racing to build up its electric offerings, which saw a 41 per cent jump in unit sales to 288,000 vehicles.

Currently the group has 23 battery-powered models and expects to have nearly 50 by the end of 2024, and forecasts the sale of five million electric vehicles a year by 2030.

In the meantime it will pay out €4.2 billion in dividends on last year's profit and buy back €1.5 billion worth of its own shares, a further boost to shareholders.