Citroen India says it will grow its sales and market share in the Indian passenger vehicle market by adopting an organic growth model — regular volume product launches and network expansion — as the French car brand, which is part of Stellantis Group, prepares to put its next new product, the 3-row SUV C3 Aircross, in the market around festival season this year.

The new 4.3-metre SUV, which fills the gap in Citroen’s portfolio between the C3 hatchback and C5 Aircross, is likely positioned in the segment that is dominated by products such as the Hyundai Creta and Kia Seltos.

Localised platform

The C3 Aircross will be the third product after the C3 hatchback and electric hatchback E-C3, built on the company’s fuel-agnostic localised C-Cubed vehicle platform. The company is also planning to launch another new vehicle on this platform early next year, but declined to provide more details.

“The platform is a modular one, and we can make above four metre and sub-four metre SUVs,” said Saurabh Vatsa, Brand Head, Citroen India.

“The bookings for C3 Aircross, which will be produced at our Thiruvallur factory near Chennai, will start next month. Deliveries will commence in October. The price will be announced later,” he added.

Vatsa said Citroen has a very clear philosophy for growing its business in India “Volume growth and market share will come organically from three things: the launch of more volume products, network expansion, and improvements in brand awareness levels,” he said.

With two products — the C3 hatchback and the C5 Aircross — the company sold about 6,000 units in 2022. With the launch of E-C3 in March, its total volumes have already touched 6,000 units during January–July this year. With C3 Aircross, its total volumes of Citroen are expected to more than double for the calendar year 2023, supported by network expansion.

Dealerships

Citroen India started 2023 with 30 dealerships, and it has now touched 45 outlets. It will reach 60 during the formal launch of C3 Aircross in October and will touch 75 by the end of 2023. “In 2024, we will double the total outlets to 150,” said Vatsa.

The market coverage will reach about 90 per cent next year when its network reaches 150 outlets, up from 65 per cent in October. Of course, it has a digital channel strategy, which doesn’t compete with the physical network. Buyers who are located away from dealerships can book online, and the vehicle will be delivered in ready-to-drive mode with registration and insurance at their doorsteps directly from the factory.

The capacity of its Thiruvallur factory near Chennai is about 1 lakh units per annum, while the powertrain factory at Hosur has a capacity of 3 lakh units of engines and gearboxes. The powertrain requirement for the C-Cubed platform is met by the Hosur unit, which also has gearboxes in Europe.

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