Citroën Targets The Indian Market
During a press conference, which took place today in Chennai (southern India), Linda Jackson, Citroën’s Global CEO, confirmed the brand’s arrival in India. This is a major step in Citroën’s internationalisation strategy, which will introduce a range of new models with international scope to the market. The first of these models will be launched by the end of 2021. In addition, the brand will launch New C5 Aircross SUV in India from 2020.
Following the announcement by Carlos Tavares (Chairman of the Groupe PSA Managing Board), and within the framework of the 2nd phase of the Push to Pass plan (26 February – 2018 Financial Results), Linda Jackson, Citroën’s Global CEO, confirmed the brand’s arrival in India during a local press conference, which took place today in Chennai (southern India). Carlos Tavares, Emmanuel Delay (Groupe PSA India-Pacific Regional Director) and Roland Bouchara (Citroën India Sales and Marketing Director) were also present at the conference.
A ‘BOOST’ IN THE INTERNATIONAL ROLLOUT OF THE BRAND
Citroën will roll out its ‘Inspired by You’ brand positioning in India, using the same approach that has brought it success over the last five years in Europe (five years of consecutive growth and increased market share):
- A strong and differentiated product offering, bearing a unique design and benchmark comfort, which creates value for customers in order to stand out in an already highly competitive automobile market.
- An unrivalled customer experience in the automotive industry (dealer network and approach to marketing, services, digital, etc.)
- Price positioning at the core of the Indian market, using a strategy with a high level of local integration (over 90%) based on the two joint venture agreements between Groupe PSA and the companies of the CK Birla Group (car assembly and distribution, and production of powertrains).
NEW INTERNATIONAL MODELS AT THE CORE OF THE MARKET’S NEEDS
To meet this challenge, Citroën will release a range of new models, with an international scope, for the first time in India, the first of which will be launched by the end of 2021. Fully in line with the framework of the Groupe PSA Core Model Strategy, these new models will follow its principles, in particular with one launch per year.
Called ‘C Cubed’, the programme is in line with Citroën’s positioning, with three Cs for:
- Cool: referring to the design of the models, bearing Citroën’s unique character.
- Comfort: a feature of the Citroën experience via well-being on board and ease-of-use for all occupants.
- Clever: with reference to the intelligent design and the high level of local integration in order to perfectly meet the core market needs.
After India, other areas of the world will benefit from these new international models. Before their launch, the brand will begin its offensive in India from 2020, by introducing its flagship New C5 Aircross SUV.
INDIA, AN OUT OF THE ORDINARY MARKET WITH IMMENSE GROWTH POTENTIAL
With 1.3 billion inhabitants, India is the second most populated country in the world and will soon take the top spot from China. In fact, by 2050, the country should total more inhabitants than China and the United States combined. It is also the youngest country in the world, with a median age of 25 years old. By way of an example, the number of Indian children under four years of age amounts to double the entire French population. By 2025, 55% of the country’s population will be of working age, which equates to 25% of the active global population. With levels of growth among the strongest at present, India may well become the leading global economy within a few years (it was 5th in 2018).
In terms of the automobile industry, India represents excellent potential. With a current ownership rate of only 40 cars per 1,000 inhabitants and a middle class that should grow by 75% by 2025 (going from 63 to 110 million), the average growth of the passenger vehicle market in the years to come is estimated at 8% per year (going from 3.3 million units in 2018 to over 6 million by 2025). Therefore, from 2020, India should be the third largest global automobile market behind China and the United States.
Linda Jackson, Citroën Global CEO, commented: “Launching a brand in a large market such as India is a unique and enthralling experience. With its boldness and its capacity to be inspired by the ways of its customers, I am convinced that Citroën has all of the assets to attract the Indian customer base. We are giving ourselves the tools to do so, with the ambition of being ‘Indian in India’, on both the industrial front with the two local joint ventures, and with the new product offering, which we are introducing in the country, building on the formulas that have brought us success in Europe.”