India is seen as the “crown jewel of the region” by Stellantis

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It is estimated that the Asia-Pacific region contributes to 20% of global new car sales annually. For Stellantis, the world’s 3rd largest auto major, the contribution is only 2% now. That fuels big ambition for the Group. “We have a huge upside, not only here in India, but across the region,” Billy Hayes, Sr. VP– Asia Pacific, Stellantis, told ETAuto.

Stellantis is present in 24 Asia-Pacific markets with 12 of its brands.

India is seen as the “crown jewel of the region” by Stellantis. Between its Citroën and Jeep brands, India contributes to around 10% of the Group’s sales in the region. Citroën, the younger of the two in India, gets more focus as it gets ready to launch the third model, and the first 4+ metre one, the C3 Aircross midsize SUV in October. Its bookings are scheduled to begin next month.

While the efforts are to grow and “make these brands strong in the market", discussions also take place regarding the introduction of another brand or two from the Stellantis portfolio. Fiat and Peugeot, which have had presence in India, much before they became part of Stellantis, are possible candidates. Alfa Romeo didn’t have a market presence in India, but at least one was brought in India for the use of an MD of the erstwhile Fiat India.

For Stellantis, the possibility of adding another brand is “always something we’re concurrently looking at”.

Fiat could be the lead candidate, considering its legacy in India. However, whatever the brand, the decision will rely purely on business viability. “It’s all about, does the business case make sense? Will the customer acceptability be there, whether it is Fiat, whether it is Alfa Romeo, whether it is Peugeot?”, Hayes said.

Localisation crucial for success

For Stellantis, irrespective of the brand it plays the game in India with, localisation is the cornerstone of its strategy. Which is why, both Jeep and Citroën have local production, with the latter having a higher localisation levels as it also has to be the volume driver. The to-be-launched C3 Aircross has over 90% local content.

“The name of the game here in this region is localisation. It’s as simple as that,” Hayes said. By that yardstick, it could be that any additional Stellantis brand could also see local production in India.

Considering that Citroën has to deliver higher volumes, the brand’s market presence is being planned for a swift ramp up. Saurabh Vatsa, Head, Citroën India, said. The current number of 44 sales outlets will be ramped up to 60 by the time the C3 Aircross is launched, and to 75 by December. Citroën India started its market journey in 2022 with 30 outlets, and the plan is to have a total of 150 outlets in 2024.

Next model
Powered by a midsize SUV and a ramped up network Citroën India, which sold only a little over 9,000 units in FY23, would hope to see more respectable volumes. What is also being bet on is the fourth model based on the modular, highly localised C-cubed platform.

The model is scheduled for launch next year. “It's a very interesting vehicle. Perhaps the market hasn’t witnessed something like that till now. And, we are quite confident that consumers will love that,” Vatsa said.

A large number of Indians love the Fiat brand, and may give another chance to Peugeot, while a few luxury seekers may like to go for an Alfa Romeo. A call on the potential introduction of any of these brands may be still some time away. For now, Citroën and Jeep have to do all the hard work for Stellantis to succeed in India.

The Group has an ambitious target of doubling its net revenue by 2030 (against USD 177 billion in 2021) and have double-digit adjusted operating income margins throughout this decade. The operations in India, Stellantis’ second largest market in the Asia-Pacific region, will be expected to make handsome contributions.

Stellantis weighs options to add another brand or two in India, 'crown jewel' of the region - ET Auto

Stellantis: The world’s 3rd largest automaker has 14 brands in its portfolio, but only two of them in India. Fiat, Peugeot, Alfa Romeo are names that get discussed internally for potential introduction in the country.

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India poised to become export hub for Citroen

French carmaker Citroen will launch its C3 Aircross Sport Utility Vehicle (SUV) in India by October, and is betting big on exports from India to markets like South Africa, ASEAN (Association of Southeast Asian Nations) and Nepal, a top company executive told Business Standard.

Citroen is likely to double its sales during the current year, as it has already sold 6,000 units of Citroën C3 and eC3 electric vehicles during the first six months

“We are going to start bookings for the C3 Aircross SUV in September and launch it in October. Price will be at the heart of the midsize SUV market,” said Saurabh Vatsa, Citroen India branch head.

The company is also poised to launch a new vehicle on the C-cubed platform by early next year.

“Earlier, we said we will be launching three vehicles on a C-cubed platform. Now, we are going to launch the fourth one by early next year,” he explained.

Stellantis, which came into existence after the merger of Fiat Chrysler Automobiles and the French PSA Group in 2021, currently sells its Jeep and Citroen brands in the country.

At present, Citroen sells three vehicles in India based on the C-cubed platform.

These include Citroën C3, C5 Aircross SUV and eC3.

The group has invested in the Indian market with two factories in Tamil Nadu – a vehicle assembly plant in Tiruvallur and an engine and transmission plant at Hosur along with a research and development (R&D) centre in Chennai.

“Stellantis is going to invest Euro 30 billion globally by 2025. India is going to be our key market.

"We are looking at launching Citroen in Indonesia too,” said Billy Hayes, head of sales, marketing and regional operations (India and Asia Pacific Region), Stellantis.

The company recently began exports to South Africa, ASEAN and Nepal from the Kamrajar Port in Chennai and are expecting export growth in future.

“We have sent the first couple of batches to these countries,” Vatsa added.

Citroen, which is at present having 45 dealers, is planning to increase it to 60 by the launch of C3 Aircross SUV in October and ramp it up to 75 by the end of this year.

This will be doubled to 150 outlets by next year, making network expansion one of the key aspects of its growth strategy, Vatsa said.

“Volume growth is going to be driven by network expansion, new model introduction and awareness,” Vatsa added.

The company claims that it is at present having a capacity of 100,000 units at Tiruvallur, which can be extended to 300,000 units, if required.

“Over 60 per cent of suppliers are within 50 km from Tiruvallur. More importantly, around 66 per cent of our C3 customers are first-time buyers, which shows that new customers are showing confidence in us,” he added.

India poised to become export hub for Citroen

French carmaker Citroen will launch its C3 Aircross Sport Utility Vehicle (SUV) in India by October, and is betting big on exports from India to markets like South Africa, ASEAN (Association of Southeast Asian Nations) and Nepal, a top company executive told Business Standard. Citroen, which...

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