In 2019, Citroën announced its presence in India with the construction of an engine and battery assembly plant, as well as a car assembly plant, to develop in the country, but also throughout the Asian region. This initial investment of more than 137 million euros gave birth to the C3, the C3 Aircross and the future C3 Aircross coupé, which is currently under development. But Citroën intends to go even further by announcing a massive new investment in development.
Massive investment for ambitious development
During the Global Investors Meeting in India held in Chennai, Stellantis announced a massive new investment of more than €220 million in the Tamil Nadu region, where the group is already established with Citroën. This new investment launches a new six-year development cycle for the brand and is in addition to the previous investment of nearly €138 million committed in 2019, when Citroën's return to the Indian market was announced.
Five years after this previous plan, Citroën has made good progress in India with the launch of the C5 Aircross from 2020, followed by the C3 in thermal and electric versions, as well as the latest C3 Aircross, the automatic versions of which will be launched on 20 January. . Citroën will be very busy on the Indian market in 2024 since, in addition to the new features on the C3 and C3 Aircross, the brand will also launch the third vehicle in its C-Cubed programme with a coupe derivative of the recent C3 Aircross whose testing focus will be intensified. Three models at the rate of one per year, this was Citroën's initial commitment when it announced its return, which will arrive at the end of the first development cycle in 2024. It was therefore time to announce the rest of this first plan, which should allow Citroën to develop more strongly on the Indian market and gain positions in the sales rankings.
Commitment to the Indian market
Aditya Jairaj, CEO, Stellantis India, said: "This significant investment under the Citroën brand underlines our commitment to the Indian automotive market. Tamil Nadu has consistently demonstrated its business-friendliness by providing a conducive environment for growth. With the strong support of the State, we aim to strengthen our manufacturing capabilities and lead technological advancements, thereby reinforcing our position as a driver of sustainable innovation. Recognising the established presence and contributions of the Stellantis Group, the Government of Tamil Nadu has pledged its support by providing critical infrastructure and regulations. This commitment underscores the State's commitment to fostering business growth.
This new investment is expected to significantly expand Citroën's activities in India and is expected to result in the production of internal combustion engines and electric vehicles, including both capital expenditure and R&D activities at the Chennai Tech Centre. It also shows that Stellantis, despite its rather disappointing sales figures, has the firm intention of staying and developing in India, making the Indian plant one of its export bases to develop in this region of the world. But this new massive investment over six years also shows that Citroën is part of the group and that the latter gives it the means to achieve its ambitions. It remains to be seen how this new investment will translate into products.