India most promising growth driver for Citroen: CEO Koskas

“India is probably the most promising one because of its size and growth potential. With the Indian market soon expected to sell 5 million vehicles (annually), there are many opportunities for us,” Thierry Koskas, the newly appointed global chief of Citroen, told ET. “India is a key part of our strategy outside of Europe.”

Koskas, on his first visit outside of Europe after assuming charge as Citroen Brand CEO, said the automaker wants to be present in India with deeply localised products positioned across segments at the heart of the market and grow ‘in a steady and progressive way’.
Koskas declined to disclose specifics of volumes and market share the automaker is eyeing, but said the company is committed to the Indian business. Citroen is eyeing as much as 30% of its global sales from international markets by 2025. Citroen is a part of the $189-billion Stellantis Group, the third largest automaker by revenue in the world.

“Europe and North America are mature markets and (are) not progressing anymore. In India, however, the market still has a lot of potential to grow. As a newcomer, we are gaining market share in a growing market. The perspective of volume growth in India is very good compared to other markets,” Koskas said on the sidelines of the global unveiling of Citroen’s latest offering – midsize SUV C3 Aircross.

This variant of Citroen is expected to lock horns with the likes of Maruti Suzuki Grand Vitara, Hyundai Creta and Toyota Hyryder. The vehicle has localisation content in excess of 90% and will be launched in the second half of 2023.

Citroen already has the hatchback C3 on sale in the local market, in petrol and electric powertrain options. A third product, a utility vehicle, is scheduled for launch next year. Citroen has invested Euro 100 million to localise the C-Cube platform for developing these three models to cater to specific requirements of consumers in the market here.Koskas said with all three vehicles in place, growth prospects locally are high. Fresh investments would follow, thereafter.

“We are preparing our long-term product plan, but it’s early days. We are obviously planning ahead. What matters is our commitment to the Indian market, which means that we entered the market to stay, grow, and become a key player in the Indian market. That’s our strategy,” he said.

Apart from local sales, Citroen also is looking closely at opportunities to scale up vehicles as well as component exports out of the country. “There is great potential. We already export some components such as gearboxes, and in terms of vehicles, we have started exporting to some Asean and African countries. This is very much part of our strategy, simply because the production base is so competitive in India that it could be a great opportunity for us to export,” he said.

With markets in Europe going all electric over the next decade, Koskas said India can emerge as a manufacturing base for internal combustion engine vehicles and components for Citroen in future.

“In Europe and North America, ICE volume is going down because electrification is going up. Whereas in India, we will probably see the number of ICE vehicles continuing to grow, even though the share of electric vehicles will also grow,” Koskas said. “So yes, it is likely that India will become a big volume maker for ICE engines in the future. We will see what we can do with that, but it will certainly be a strong industrial base for components as well.”

More immediately, the company said it is focused on seeding the new range of products in the market here, and expanding the distribution network simultaneously.