It is estimated that the Asia-Pacific region contributes to 20% of global new car sales annually. For Stellantis, the world’s 3rd largest auto major, the contribution is only 2% now. That fuels big ambition for the Group. “We have a huge upside, not only here in India, but across the region,” Billy Hayes, Sr. VP– Asia Pacific, Stellantis, told ETAuto.Stellantis is present in 24 Asia-Pacific markets with 12 of its brands.
India is seen as the “crown jewel of the region” by Stellantis. Between its Citroën and Jeep brands, India contributes to around 10% of the Group’s sales in the region. Citroën, the younger of the two in India, gets more focus as it gets ready to launch the third model, and the first 4+ metre one, the C3 Aircross midsize SUV in October. Its bookings are scheduled to begin next month.
While the efforts are to grow and “make these brands strong in the market”, discussions also take place regarding the introduction of another brand or two from the Stellantis portfolio. Fiat and Peugeot, which have had presence in India, much before they became part of Stellantis, are possible candidates. Alfa Romeo didn’t have a market presence in India, but at least one was brought in India for the use of an MD of the erstwhile Fiat India.
For Stellantis, the possibility of adding another brand is “always something we’re concurrently looking at”.
Fiat could be the lead candidate, considering its legacy in India. However, whatever the brand, the decision will rely purely on business viability. “It’s all about, does the business case make sense? Will the customer acceptability be there, whether it is Fiat, whether it is Alfa Romeo, whether it is Peugeot?”, Hayes said.
Localisation crucial for success
For Stellantis, irrespective of the brand it plays the game in India with, localisation is the cornerstone of its strategy. Which is why, both Jeep and Citroën have local production, with the latter having a higher localisation levels as it also has to be the volume driver. The to-be-launched C3 Aircross has over 90% local content.
“The name of the game here in this region is localisation. It’s as simple as that,” Hayes said. By that yardstick, it could be that any additional Stellantis brand could also see local production in India.
Considering that Citroën has to deliver higher volumes, the brand’s market presence is being planned for a swift ramp up. Saurabh Vatsa, Head, Citroën India, said. The current number of 44 sales outlets will be ramped up to 60 by the time the C3 Aircross is launched, and to 75 by December. Citroën India started its market journey in 2022 with 30 outlets, and the plan is to have a total of 150 outlets in 2024.
Next model
Powered by a midsize SUV and a ramped up network Citroën India, which sold only a little over 9,000 units in FY23, would hope to see more respectable volumes. What is also being bet on is the fourth model based on the modular, highly localised C-cubed platform.
The model is scheduled for launch next year. “It’s a very interesting vehicle. Perhaps the market hasn’t witnessed something like that till now. And, we are quite confident that consumers will love that,” Vatsa said.
A large number of Indians love the Fiat brand, and may give another chance to Peugeot, while a few luxury seekers may like to go for an Alfa Romeo. A call on the potential introduction of any of these brands may be still some time away. For now, Citroën and Jeep have to do all the hard work for Stellantis to succeed in India.
The Group has an ambitious target of doubling its net revenue by 2030 (against USD 177 billion in 2021) and have double-digit adjusted operating income margins throughout this decade. The operations in India, Stellantis’ second largest market in the Asia-Pacific region, will be expected to make handsome contributions.
