Stellantis, the multinational automotive corporation, is in talks with Chinese companies Xiaomi and Xpeng regarding potential investments in its European business operations, according to Bloomberg reports.

The discussions come as Stellantis seeks to strengthen its position in the European market amid increasing competition from Chinese automakers and changing dynamics in the global automotive industry. Stellantis, formed through the merger of Fiat Chrysler and PSA Group, owns brands including Jeep, Ram, Dodge, Chrysler, Peugeot, and Citroën.

Xiaomi, primarily known as a smartphone and consumer electronics manufacturer, has been expanding into the electric vehicle sector. The Beijing-based company launched its first electric vehicle, the SU7 sedan, earlier this year as part of its diversification strategy into the automotive market.

Xpeng, meanwhile, is an established Chinese electric vehicle manufacturer that has been seeking to expand its presence in international markets. The Guangzhou-based company specializes in smart electric vehicles and has been working to develop autonomous driving technologies.

The potential investments would represent a significant development in the automotive industry's ongoing globalization and the growing influence of Chinese companies in the European market. However, details about the scope, timeline, and specific terms of the potential investments have not been disclosed by the companies involved.