Citroën targets the Indian market2. August 2019
The announcement was made during a press conference in Chennai, southern India, attended by Citroën CEO Linda Jackson and other top managers. Citroën hopes to increase its international presence by positioning itself in the Indian automotive market. The same procedures that have been successful in Europe over the last five years will be applied. There, a continuous growth with gains in market share could be recorded. This strategy includes vehicles with a distinctive design and high user comfort, excellent customer service and attractive pricing. One of the ways to achieve this is through strong local integration based on the two existing joint ventures between the PSA Group and the CK Birla Group. The joint ventures are active in the sales and assembly of vehicles as well as in the manufacturing of powertrains.
In order to survive in the Indian market, Citroën plans to develop and introduce new vehicle models, initially tailored to local needs. At a later stage, however, exports to other countries are also planned. However, as these vehicles will not be ready for the market until 2021 at the earliest, Citroën will start its offensive in India with the flagship model C5 Aircross SUV as early as 2020.
With 1.3 billion inhabitants, India is the country with the second highest population worldwide and will soon overtake China as number one. It also has the average youngest population of 25 years and, based on current growth, experts expect India to become the leading economic power in a few years’ time. India also has excellent potential for the automotive industry. Currently, only 40 per 1000 inhabitants own a car and the population of the middle class will grow by 75 percent or, expressed in figures, from 63 million to 110 million by 2025. The market for passenger cars is expected to grow by 8 percent annually from 3.3 million units to over 6 million in 2025, making India the third largest automotive market after China and the US by 2020. You too can benefit from the growth in India. For the export of vehicles and components, you need an obligatory India certification according to the Automotive Industry Standard (AIS). We will be happy to provide you with comprehensive advice on AIS certification for India.