PSA Group plans to launch Citroën brand in India by end of 2021

PSA Group plans to launch its Citroën brand in India by the end of 2021, as part of an ambition to conquer new markets, the French car maker said. This comes two years after it announced a joint venture with CK Birla Group.

“We have selected Citroën as the brand for our India comeback. We have invested and created manufacturing footprint in India,” Carlos Tavares, chairman of the managing board, said at the announcement of the group’s annual results for financial year 2018.

The firm has a powertrain plant, a vehicle plant and a partner in India and is now building a network to support the launch of this new brand, he added. This will be PSA’s second innings in India. In the 1990s, it sold the Peugeot 309 sedan through a collaboration with a Premier Automobile. 

Introducing the Citroën is part of PSA Group’s plan to increase sales by 50 per cent outside of Europe by the end of 2021. To achieve that, it plans to launch Peugeot in the North American market, Citroën in India and Opel in Russia.

The statement did not elaborate on the segments the firm plans to address in India. According to a source, Citroën will bring a hatchback and a sedan that will be pitted against the Baleno and Dzire. It might also consider bringing premium sports utility vehicles. 

Including export, Citroën is looking at producing 50,000 models in the first full year of operations, the source said. However, it might have to whittle the volume, given the drop in demand globally for vehicles powered by an internal combustion engine, he added.  

PSA announced the India project as part of a ‘Push to Pass plan’, launched at the beginning of 2017 with the signing of two joint ventures with CK Birla Group. 

The stated aim is to “be Indian in India”, to make vehicles and powertrains in Tamil Nadu and to bring uptodate technology for an ecologically-friendly product range. Further details will be provided at a later stage, went the statement. 

"It is far more strategic to bring in the Citroen as the first brand," said Avik Chattopadhyay, co-founder at Expereal, a brand consulting firm. It is known for its cutting edge technology, bold design and focus on crossovers and SUVs, he said. Bringing  Puegeot  would not have been a good idea as it was in India with the Premier, the brand therefore, may have some baggage. What also works in Citroen's favour is the fact that it already has lot of development work going on in China, this will help the company reduce the costs, he added. 

Emmanuel Delay, head of its India-Pacific region, said PSA aims to be fully integrated in India, including local production of vehicles and powertrains, distribution of vehicles and services, as well as procurement, for the whole group. “Today’s milestone represents a significant step to meet customers’ expectation in India soon,” he said.