As the Stellantis Group focusses on growth in India by launching new products and expanding the network for the Citroën brand, the country is now a critical sourcing hub for the European automotive giant. Over the next two years, the group’s parts exports from India are expected to more than triple, reaching about ₹10,000 crore.
The Dutch-headquartered Stellantis Group, which sells vehicles under the Jeep and Citroën brands in India, is preparing to launch its all-new SUV Coupé Basalt, Citroën’s fifth product, in the country.
Although Citroën has recently seen a decline in sales in India, the company is working on strategies to revive its numbers. “We are taking two key steps to boost volumes. First, we are expanding our product line-up with an SUV that we believe will be disruptive and create a new segment of buyers. The Basalt is expected to drive significant volumes for us,” Shailesh Hazela, MD & CEO of Stellantis India, told businessline during the unveiling of the Basalt in Goa on Monday.
“We’re also enhancing our product features to make them more competitive. These efforts should help us increase our volumes, going forward,” he added.
Brand’s reach
The Basalt will complement Citroën’s existing models, the C3 and C3 Aircross, in India. The C3 caters to the sub-compact segment, while the C3 Aircross serves the compact segment. The new SUV coupé aims to carve out its own niche within the compact SUV market and expand the brand’s reach to a broader customer base, according to Shishir Mishra, Brand Director - Citroën India.
Citroën will also be expanding its network to make the brand available to consumers beyond tier-I/-II cities. The number of sales and service touchpoints is to increase to 200 by 2024-end from about 85 during the launch of Basalt.
Citroën would stick to the strategy of introducing one new product every year in India. The upcoming SUV Basalt is also joining the list of cars produced from the company’s new India-built C-Cubed vehicle platform, making cars for both Indian and South American markets.
Hazela also stated that Stellantis’ operations in India go beyond serving the domestic market and contribute to the group’s global needs. “Indian suppliers for Jeep and Citroën vehicles also contribute significantly to Stellantis Group’s other vehicle programmes, including Maserati. In two years, we expect parts exports from India to exceed ₹10,000 crore, up from the current level of around ₹3,000 crore. This figure excludes cars, engines and transmissions,” he added.
This significant growth in sourcing is driven by new businesses awarded to Indian suppliers, with about 60-70 of the group’s 250 suppliers qualified to supply for global vehicle programmes.
The company manufactures about two lakh engines at its Hosur facility, exporting these to Europe. In addition, it produces around 3.5 lakh transmissions, including 5-speed and 6-speed manual versions, with the majority being shipped to Europe.
This correspondent was in Goa at the invitation of the company