“The Indian market is very important for Citroen in its global expansion plan,” Thierry Koskas, CEO, Citroen, told Mobility Outlook during the recent launch of the C3 Aircross in Delhi.
He said the company is targeting 30% of its sales to be beyond Europe by 2030 and India is a key pillar of this strategy. The Asia Pacific region for Citroen had grown 57% in 2022 and South America by 21%, which has given it confidence about its global prospects.
According to Koskas, India’s manufacturing competencies makes it the ideal export base for the French automaker. “Overall I think, India is a great hub because it has a very competitive industrial and production base,” Koskas said.
The C3 is now being shipped out from India to ASEAN and Africa while Citroen will also explore the potential of exporting its electric sibling, eC3, from India. The company also supplies components from India to other international markets.
Citroen, which is part of the Stellantis portfolio, launched the C5 Aircross as its debut product in India. Koskas said it was chosen to represent the 'premium and plush riding' that the brand is known for.
The company then announced its plans to develop and launch three vehicles by 2024, specifically developed for emerging markets like India. The plan was to develop a platform with a high level of localisation and this was the genesis of C-Cube which spawned the C3 with a localisation level of 95%.
While the C3 was a global trademark, the model in India product was very different and Vincent Cobée, the then CEO of Citroen, had told Mobility Outlook that its design was inspired by the South American market.
The second product under the programme is the C3 Aircross based on a stretched version of the C3 platform. It has been developed by the engineering teams in India and Brazil, confirmed Koskas. To be available in five seater and seven seater options, the C3 Aircross is expected to go on sale in Q2 FY23.
Koskas said vehicle shapes would evolve in the future and, in the case of a fast growing segment like SUVs, they will acquire more aerodynamic shapes such as crossovers. Whether this will be the third product in the C-Cube platform remains to be seen.
Citroen is also upbeat about electrification in India and its eC3 was launched in February. Saurabh Vatsa, Brand Head, Citroen India, said with the B segment being the biggest in the country, it made sense to convert the C3 into eC3.
Thus far, 449 units have been sold in March and April as per Vahan data. From Citroen’s point of view, ride hailing services are also opting for the eC3 thanks to its plush ride quality. Ride hailing accounts for 50% of sales with the balance taken up by the personal buying segment.
Roland Bouchara, CEO and Managing Director, Stellantis India, said the eC3 has helped the company become a key player in the EV market. The “power agnostic capabilities” of the C-Cube platform was also helping Citroen shift comfortably to all kinds of powertrain requirements.
The EV market in India has been consistently growing which gives Citroen the confidence to bet on this segment, added Bouchara. “We cannot back electric cars on the basis of incentives forever and just ensure that we are competitive enough to offer them at a good price (without incentives),” said Koskas. Going forward, an electric C3 Aircross cannot be ruled out if the market seeks such a vehicle.
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