The whole C-Cube, or the Smart Car, programme is originating out of India. So, there is a huge dimension of engineering exports also from the country, said its top global executives, adding that this would help ensure best cost.
Citroen is part of the Stellantis Group – which also sells the Jeep brand in India. It expects one-fourth to one-third of its total output in India to go towards overseas markets to ensure higher utilisation of the facilities.
With a strong emphasis on sustainable and profitable business, Citroen’s focus is on increasing revenue and profitability versus running behind volumes and market share. Vincent Cobee, the global CEO of the Citroen brand, told ET the core strategy for Citroen in India was “start with (offering) value, value will drive volumes and volumes will drive profits.”
The C-Cube project mooted in India, three-four years back, will enable Citroen to enter the mainstream B-segment hatchback, SUV and MPV markets in the next few years. The group is expecting a combined volume of just 100,000 cars by 2025, yet it assures this target would be achieved with profits.
The project has been designed to accommodate an electric powertrain, which will help Citroen transition to cleaner vehicles in line with the market. The B-segment hatchback will hit the roads in July, which will be followed by an electric version of the model in 2023, with an SUV and MPV to join the portfolio eventually. To kick-off on a profitable note, Citroen has been using its engine and gearbox factory at Hosur in TN with the CK Birla Group for the export business for the last few years. Now, the output will also be used for the domestic market.
“That is the right way to do it if you want economic efficiency. A billion dollars of part sourcing is not a bad number; we are already talking about sourcing millions of dollars already,” said Cobee.
