French automaker Citroën, part of the Stellantis Group, has seen its order book for electric vehicles swell to about 7,000 units in the fleet segment, as scores of mobility companies in India aim to enhance their fleets with sustainable mobility solutions. “We’ve signed MoUs to supply 7,000 units of our electric car, the ë-C3, which will be delivered over the next one year,” said Shishir Mishra, Brand Director of Citroën India, in an interview with businessline.
Citroën has secured a significant deal with ride-hailing start-up BluSmart to supply 4,000 units of the ë-C3. Recently, Refex Green Mobility also signed an agreement to procure about 500 units, while OHM E Logistics committed to purchasing 1,000 units of the ë-C3 over the next 12 months.
Citroën believes that the adoption of electric vehicles will gain momentum, driven by green mobility companies. As more people experience these vehicles, interest would grow, which Mishra believes will benefit both the private and personal segments. While the initiative is starting in metro areas, Citroën expects it to expand into Tier-2 and Tier-3 cities over time.
Cyclical trends
Mishra also noted that EV volume trends have been cyclical, with periods of growth and decline. However, given the current penetration of EVs, it’s clear that the market is still in its early stages. The future looks highly promising as more consumers become aware of the importance of sustainable transportation. Citroën is confident that this shift towards eco-friendly mobility presents a bright future.
Additionally, Mishra highlighted that government policies have played a crucial role in promoting EV adoption by supporting both manufacturers and consumers. Citroën is fully aligned with these efforts and EVs are a key part of the company’s strategic plan through 2030, both in India and globally.
In 2023, Citroën sold about 2,000 units of its electric cars and anticipates higher sales in 2024, bolstered by strong fleet orders. The India-built ë-C3 has also been shipped to ASEAN markets, with around 1,000 units exported to the region.
Between January and July 2024, total electric passenger vehicle (PV) sales in India are estimated at 52,334 units, up from 46,523 units in the same period the previous year. Leading electric PV brand Tata Motors indicated a slight moderation in EV sales in the fleet segment in recent months following the expiration of FAME incentives, after a 2-3-fold jump in volumes during the March 2024 quarter.
“To further support EV adoption, policymakers may need to consider alternative financial solutions for developing the EV ecosystem, including charging infrastructure, which could help alleviate range anxiety and encourage broader adoption. One potential approach is to offer accelerated depreciation for fleet and charging point owners, thereby incentivising EV uptake and investment in charging businesses. This could be particularly beneficial given that charging businesses often face negative working capital cycles,” according to a report by the Singapore-based Climate and Sustainability Initiative (CSI).