As expected, Groupe PSA has announced that it will re-enter the Indian market with the Citroen brand, which offers cheaper cars compared to Peugeot and DS.
Citroen’s India entry is a part of Groupe PSA’s global expansion plan, under which it will also launch the Peugeot brand in the USA and Canada and Opel in Russia. Groupe PSA initially planned to re-enter the Indian market by 2020, but now, it says that the first vehicle is expected before the end of 2021. The latest development also pours cold water on rumours of the C5 Aircross CKD import launch this year as a brand-building exercise.
Announcing the Citroen brand for India today, Linda Jackson, CEO, Citroen, said: “Building on the Brand's success in Europe with 5 consecutive years of growth, I am convinced that Citroën’s selling proposition of unique styling, eco-friendly & comfortable cars at the heart of the market has all the potential to satisfy Indian customers.”
In November 2018, Groupe PSA & the CK Birla Group inaugurated their first powertrain JV plant in India. This greenfield facility, located in Hosur, Tamil Nadu, will have an initial manufacturing capacity of about 3,00,000 units per year for the transmissions and 2,00,000 units for the BS-VI compliant engines.
Groupe PSA will launch Citroen models based on the Common Modular Platform (CMP) in India. This platform, developed in cooperation with Dongfeng, can underpin B- and C-segment vehicles. This year, it will gain an electric variant called ‘eCMP’.
Citroen’s portfolio under the INR 10 lakh mark should include a hatchback, a sedan and an SUV - all falling in the B-segment.