In the Milan Stock Exchange, Stellantis stock outperforms the market, registering a 2.5 percent rise at 9:40 a.m. compared with +0.35 percent for the Ftse Mib index.

According to CEO Carlos Tavares, however, the group must accelerate on cost cutting to maintain strong profitability in a more challenging pricing environment.

"If the market is more competitive in terms of pricing, we have to work hard on cost cutting to give the market a much-needed breathing space, and protect our unit margins in the meantime," the Ceo explained during the press briefing on the half-yearly report.

In the six months to the end of June, the automaker's adjusted Ebit rose 11 percent to 14.1 billion euros, above analysts' forecasts of 12.1 billion, according to a Reuters poll.

The margin on adjusted Ebit fell to 14.4 percent from 14.5 percent in the first half of last year, when a significant inflationary environment supported appropriate pricing policies, Tavares said.

For the full year, the group confirmed guidance of a 'double-digit' margin.

Net revenues grew 12 percent to 98.4 billion, mainly due to higher deliveries, and against an analyst estimate of 96.8 billion.

Global EV sales increased 24% year-on-year for battery electric vehicles (Bev) and 28% for low-emission vehicles (Lev).

Ebit margin in North America, the group's most profitable market fell 60 basis points in the first half to 17.5 percent.

Regarding the 1.5 billion buyback plan, Stellantis bought back 0.7 billion of its own shares at the end of June and expects to complete the program by the end of 2023.

(English version Andrea Mandalà, editing Stefano Bernabei)