Carmaker Stellantis is trying to expand its business outside of its stronghold of Europe and enter into the emerging markets where the company has limited exposure. As a part of this strategy the company is planning for the launch of a new model in India and Latin America next year under its Citroen brand, the group said on Thursday.
This is also a return for Citroen to the Indian market which it had exited almost a century back in the 1930s. This move by the company also comes at a time when a number of foreign car makers are leaving the Indian market after being unable to make a mark in the market and in making profits.
The merger of Fiat Chrysler and Peugeot-maker PSA earlier this year resulted in the formation of Stellantis and currently the group owns a range of brands such as Jeep and Ram in the United States. The group is however trying to reduce its reliance on the European market for growth.
Manufacturing and launch of a new version of the Citroen C3, which is positioned in the European market as a city car, is being planned by the company, Stellantis and. According to the company, it plans to make the vehicle and launch it in the markets of India and Latin America in the second half of 2022.
The company also plans to make the model in India via a joint venture with CK Birla. It will also manufacture the vehicle in Brazil.
Citroen will be the first of three models that the company is planning to make and launch specifically for the Indian market as well as for the Latin American market over the next three years, Citroen said.
By 2030, India is expected to be the third largest car market in the world after China and the United States with the market reaching the level of sale of new cars of between 4 and 5 million units a year by then, Stellantis has said.
Despite the optimistic forecast for the Indian market, many foreign companies have found the market a challenging one, with stiff competition from local brands and companies including Maruti Suzuki. They also face tough competition from a few foreign brands such as South Korea's Hyundai. Last week, Ford announced its decision to stop manufacturing cars in the market after it struggled for years to fend of competition and attain profitability in the market.
Stellantis has set a target of sales growth from markets outside of Europe to account for 30 per cent of the total revenues of the group by the middle of this decade while currently, sale revenues from outside of the European market accounts for 15 per cent of the total revenues of the group.
(Source:www.ndtv.com)
This is also a return for Citroen to the Indian market which it had exited almost a century back in the 1930s. This move by the company also comes at a time when a number of foreign car makers are leaving the Indian market after being unable to make a mark in the market and in making profits.
The merger of Fiat Chrysler and Peugeot-maker PSA earlier this year resulted in the formation of Stellantis and currently the group owns a range of brands such as Jeep and Ram in the United States. The group is however trying to reduce its reliance on the European market for growth.
Manufacturing and launch of a new version of the Citroen C3, which is positioned in the European market as a city car, is being planned by the company, Stellantis and. According to the company, it plans to make the vehicle and launch it in the markets of India and Latin America in the second half of 2022.
The company also plans to make the model in India via a joint venture with CK Birla. It will also manufacture the vehicle in Brazil.
Citroen will be the first of three models that the company is planning to make and launch specifically for the Indian market as well as for the Latin American market over the next three years, Citroen said.
By 2030, India is expected to be the third largest car market in the world after China and the United States with the market reaching the level of sale of new cars of between 4 and 5 million units a year by then, Stellantis has said.
Despite the optimistic forecast for the Indian market, many foreign companies have found the market a challenging one, with stiff competition from local brands and companies including Maruti Suzuki. They also face tough competition from a few foreign brands such as South Korea's Hyundai. Last week, Ford announced its decision to stop manufacturing cars in the market after it struggled for years to fend of competition and attain profitability in the market.
Stellantis has set a target of sales growth from markets outside of Europe to account for 30 per cent of the total revenues of the group by the middle of this decade while currently, sale revenues from outside of the European market accounts for 15 per cent of the total revenues of the group.
(Source:www.ndtv.com)
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