Home / Auto News / Made in India Citroen car to launch in India by 2021

New Delhi: French carmaker Groupe PSA on Tuesday announced its plans to enter the Indian market with a locally manufactured vehicle that will be launched in 2021 under its Citroen brand. The company, apart from manufacturing cars, is planning to set up a component manufacturing base in India for local and global operations.

Groupe PSA will set up manufacturing base in Tamil Nadu, like its peer Renault SA.

The India plan was announced by Groupe PSA chairman Carlos Tavare on Tuesday, while presenting the financial results for 2018.

“We are very proud to launch Citroen in India, one of the fastest growing markets in the world. Building on the brand's success in Europe with five consecutive years of growth, I am convinced that Citroen’s selling proposition of unique styling, and ecofriendly and comfortable cars at the heart of the market, has the potential to satisfy Indian customers," said Citroen’s chief executive officer Linda Jackson.

The French carmaker will manufacture vehicles and powertrains in India under a joint venture formed with AVTEC Ltd, a subsidiary of the CK Birla Group. In late 2018, both companies announced the setting up of a greenfield plant in Hosur district of Tamil Nadu. The plant has a capacity to manufacture 300,000 powertrains and 200,000 BS-VI-compliant engines a year. The total investment for this plant will go up to 600 crore once it is complete.

The Bharat Stage-VI emission norms will kick in from April 2020.

“This project means to be fully integrated in India with a comprehensive ecosystem, including local production of vehicles and powertrains, distribution of vehicles and services as well as procurement for the whole group. Today’s milestone represents a significant step to meet customers’ expectations in India soon," said Emmanuel Delay, executive vice president and operational director (India-Pacific), Groupe PSA.

The India project, announced as part of Group PSA's ‘Push to Pass’ plan, was launched in 2017 with the signing of two joint venture agreements with the CK Birla Group.

The group’s aim is to “be Indian in India", to manufacture vehicles and power trains in Tamil Nadu and to bring in state-of-the-art technology for an ecofriendly new product range, said the company in a press note.

Unlike a lot of other manufacturers, Groupe PSA will invest in India with an aim of manufacturing vehicles with high levels of localization in order to reign in the cost. It is also very evident that the company will use India as a manufacturing hub for vehicles and related components. 

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