Stellantis Group is focused on growth in India with new product launches and the expansion of the Citroen brand network, with the country now a key sourcing hub for the European auto giant. Over the next two years, the Group’s component exports from India are expected to grow more than threefold to around INR 1 trillion.
Netherlands-based Stellantis Group, which sells cars under the Jeep and Citroen brands in India, is preparing to launch its fifth Citroen product, the all-new Basalt SUV Coupe, in India.
Citroen’s sales in India have seen a slump recently, but the company is working on a strategy to revive sales. “We are taking two key steps to increase sales. First, we are expanding our product range with an SUV that will have a disruptive effect and create a new customer segment. We expect Basalt to be a significant volume driver for us,” said Shailesh Hazera, MD and CEO, Stellantis India. Business Line At the unveiling ceremony of Basalt in Goa on Monday.
“We are enhancing product features to make us more competitive. These efforts should help us increase our sales volumes in the future,” he added.
Brand reach
The Basalt will complement Citroen’s existing models in India – the C3 and C3 Aircross. The C3 caters to the sub-compact segment while the C3 Aircross caters to the compact segment. According to Shishir Mishra, Brand Director, Citroen India, the new SUV coupe aims to carve a niche for itself in the compact SUV market and expand the brand’s reach to a wider customer base.
Citroën plans to expand its network to take the brand to consumers outside tier-1 and tier-2 cities: the number of sales and service outlets will increase from around 85 at the time of Basalt’s launch to 200 by the end of 2024.
Citroen is likely to stick to its strategy of introducing one new product every year in India, with the upcoming Basalt SUV joining the list of cars produced from the company’s new Indian-made C-Cubed vehicle platform, which will see cars manufactured for both Indian and South American markets.
Hazera also said Stellantis’ operations in India go beyond serving the domestic market, but also contribute to the group’s global needs. “Indian companies that supply Jeep and Citroen vehicles also contribute significantly to Stellantis Group’s other vehicle programs, including Maserati. In two years’ time, we expect component exports from India to cross Rs 10,000 crore from the current level of about Rs 3,000 crore. This figure does not include cars, engines and transmissions,” he added.
This significant increase in procurement has been driven by new business awarded to Indian suppliers, with around 60-70 of the group’s 250 suppliers now eligible to supply to global vehicle programmes.
The company manufactures around 200,000 engines at its Hosur plant for export to Europe, and also produces around 350,000 transmissions, including five- and six-speed manual versions, the majority of which are shipped to Europe.
This correspondent was in Goa at the invitation of his company.
