French auto major Groupe PSA will be entering India with the Citroen C5 Aircross sport utility vehicle (SUV) to be launched by end 2020.

The cars would be made at its Tiruvallur plant, near Chennai, part of the vehicle manufacturing joint venture between Groupe PSA and the CK Birla Group. Engines and gear boxes would be manufactured at PSA-AVTEC Powertrain JV at Hosur.

The Tiruvallur plant would have an annual capacity to produce about one lakh units while the Hosur plant can produce about three lakh gear boxes and about two lakh engines, said Emmanuel Delay, executive vice-president and head, India-Pacific, Groupe PSA.

Groupe PSA has a pipeline of four Citroen-branded vehicles that would be rolled out over a four-year period beginning 2020. The C5 Aircross, Groupe PSA’s flagship product, would be made and launched in India before being introduced in other parts of the world, said company officials.

Push-to-pass plan

“India is an important next step for Groupe PSA, as part of ‘push-to-pass’ plan to increase our international footprint and revenues,” said Carlos Tavares, chairman of the managing board, Groupe PSA. “With the introduction of Citroen, our aim is to ‘be Indian in India’ and our association with the CK Birla Group will be important to become a major player in the Indian automotive market.”

While denying that the group was a late entrant to India, he said: “We believe India is a strong opportunity for growth and our commitment, professionalism and agility of our teams combined with the pursuit of operational excellence, will sustainably drive our performance and increase the satisfaction of our future customers in the country. We are not chasing market share. We are a long-term player. Many other markets are not doing well now and are shaky.

“There is a lot of room for growth. We will take our time and we are not in a rush,” he added. He also said that by 2021, the group aimed to increase sales outside Europe by 50%. Groupe PSA was looking to re-launch the Opel in Russia, Citroen in India and the Peugeot brand in the U.S.

High-potential market

“Indian market is very dynamic, with high potential. We have the right positioning to meet the expectations of Indian customers. The cars will be launched under the programme name of C Cubed, standing for cool, comfort and clever. It will be positioned in the heart of the market and not as a premium product,” said Linda Jackson, CEO, Citroen Brand, Groupe PSA.

Adding that the group was planning to capture 2% market share in India in four years, Mr. Delay said “We have an action plan... our business is resilient even with a 2% share.”