Citroen is betting on India with an electric car

Citroen is betting on India with an electric car

Citroën is once again planning to conquer the world, and its strategy involves India! It is Carlos Tavares, the boss of the Stellantis group who has just announced. In the rows of Figaro economywe learn that the group will launch an electric vehicle manufactured on site, under the Citroën brand.

Stellantis targets double-digit growth in 2023 and 2024

The car group is launching a small car, less than 4 meters long. This is important information because in India you pay extra if you exceed this size. So the car will be built, assembled and sold locally, in India, under the Citroën brand. And it will be an electric car – the group still has to find local battery suppliers -. Why electricity? Because the sales of this type of engine will represent 5 to 10% of the mix in 2025 (it’s tomorrow), and 25 to 30% at the end of the decade, so in 7 years, according to Carlos Tavares, who is quoted this. in the morning Le Figaro Economy.

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Today, the current market share of all Stellantis in the Indian market represents less than 1%, (remember that Stellantis brings together fifteen brands, and Peugeot, Opel, Fiat, Alfa Romeo, Maserati, but obviously not all are sold. inside). So, 1%, so we tell ourselves that the group can only continue. It is also on the site with the production of Jeep and Citroën, already, but gasoline models: C3 and C5 AirCross. The Indian market, we think is huge, as it is a country of 1.4 billion inhabitants. In fact, only 3 million cars are sold there every year (France before Covid was more than 2 million). But the country’s growth and the emergence of a large middle class with more purchasing power will increase opportunities. So don’t be late. Stellantis targets double-digit growth in 2023 and 2024.

Carlos Tavares: “Potentially profitable in India”

So it’s a very booming market, but it’s not easy to grow there. Moreover, Carlos Tavares has a word to describe this, he talks “mental retardation”. In other words, you have to do it well and smartly with little trouble, and sometimes deal with hardware problems. “It is possible to make a profit in India if you do things the Indian way”, says Carlos Tavares again. This means several things, first of all, doing everything locally, sourcing parts in India, and a 100% Indian value chain, even if it means buying subcontractor factories. We can also consider building them from scratch, but it is more difficult when you arrive from abroad. The last element, to manage its operations and line, to keep costs as low as possible. That is the condition of Indians to be able to afford the cars you give them. That’s great, cost management down to the millimeter is the Expertise of the cost killer Tavares, PSA and Opel repairer.

Francois Geffrey

Listen to François Geffrier (from 6’30)

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