Ensuring long-term consistency and uniformity in policies is crucial for the continued growth of the Indian auto industry, according to Stellantis India's CEO.
In a bid to accelerate the growth of the electric vehicle (EV) market and expand the presence of the Citroen brand in India, Stellantis India has outlined its key focus areas and wishes regarding government policies, EVs, and market expansion.
Stellantis India, the parent company of the Citroen brand, has emphasised the need for a long-term, stable policy framework that is consistent and uniform across different states in India. According to the company’s CEO and Managing Director, Shailesh Hazela, a longer policy horizon is crucial for automakers to make sound investment decisions. Specifically, Stellantis requests that any policies the government adopts should be applicable for an extended period and implemented uniformly throughout the country, particularly regarding EV incentives and taxation.
Hazela highlighted the current situation where different Indian states roll out separate policies for electric vehicles, which complicates unified industry planning. A standardized approach would benefit the entire auto industry, enabling national-level planning instead of state-by-state variations.
In terms of EVs, Stellantis has invested in creating supporting infrastructure for electric vehicles in India over recent years. The company plans to scale up its electric vehicle presence, especially by expanding offerings under the Citroen brand. This includes models like the electric e-C3. Uniform EV policies and tax structures across states would further help Stellantis to plan and grow its EV market efficiently.
Stellantis India aims to significantly expand the Citroen brand’s presence in the country by nearly doubling its sales touchpoints from around 80 to over 150 within the next year. The expansion focus will be on smaller towns and semi-urban areas, especially targeting Tier III and Tier IV markets chosen for their proximity to larger Tier I and Tier II cities and promising growth potential. The company plans a mix of large and small sales formats to suit these diverse markets.
Citroen currently offers models such as the C3 hatchback, Aircross SUV, Basalt coupe-SUV, and the electric e-C3 in India. Stellantis aims to double Citroen’s market share in the next 12 months, with plans to continue growth beyond that timeframe.
Despite having multiple models in its portfolio, Citroen remains a small player in the Indian passenger vehicle market. However, with its focus on Tier III and Tier IV markets and its commitment to EVs, the French automaker is poised for significant growth in the near future. The company launched its first car in India, the C5 Aircross SUV, in early 2021.
In summary, Stellantis India’s wishlist is oriented toward long-term policy stability and uniformity nationwide, especially for EV-related policies and taxation, which would enable better planning and growth. Concurrently, Stellantis plans to expand Citroen's footprint aggressively in tier-3 and tier-4 towns while boosting its EV offerings.
Stellantis India is advocating for a nationwide, long-term, and uniform policy framework, especially in regard to electric vehicle (EV) incentives and taxation, to support its strategic growth and investment decisions. To enhance the electric vehicle presence of the Citroen brand, Stellantis aims to expand its EV offerings, such as the electric e-C3, and is planning to double Citroen's sales touchpoints across India, focusing on smaller towns and promising Tier III and Tier IV markets.
