New C3 Aspire Citroen to Become a Prominent EV Player
French carmaker Citro?n, which may launch an electric model of its C3 hatchback in India next month, is expected to account for 15% of electric vehicle sales in the Indian passenger vehicle market by the end of the last decade. Citro?n is a newcomer venturing into a comparatively new segment of the market with the electric C3. As per the CEO of Stellantis India, Citro?n is also a part of the Stellantis Group, which also sells Jeep models in India and they need to become a key participant in this growing segment.
Rapid Evolution of EVs
Almost all automakers are lining up electric vehicles to launch in the mainstream market in the next few years and the increase in the availability of charging stations. According to the CEO, the firm expects the number of EVs to grow in the next eight years. As the gross sales will increase to around 770,000 models yearly, from 55,000-60,000 models in 2022.
According to the company, EV sales are expected to grow at a compound annual rate of 56% during this period as against an estimated 5.6% for the overall passenger vehicle segment. However, its estimates suggest that the share of EVs in India's passenger vehicle market may fall short of the government's NITI Aayog target of 30% by 2030. Growing demand for low-emission vehicles and government initiatives to boost EV deployment drive the growth of the global market. As a result of all these factors, Astute Analytica estimates that the growth graph of the global electric vehicle market will grow at a CAGR of 21.9% in the future.
Constant Urge for Development
According to Citro?n's brand head of India, to ease the concern over the number of EVs, the automaker has entered into a strategic partnership with Jio-BP to install fast chargers at key showrooms and dealerships. Although the services can be open to all, however, its possibilities can be desired.
Citroen plans to launch two more variants in the local market by the end of 2024 along with the electric C3, which is expected to be priced between Rs 10 lakh and Rs 12 lakh. These products, which can run on conventional fuel, can be placed in the fast-growing utility vehicle segment and the company hopes that this will help it increase its volumes. Overall, the intention is not to track volumes, but to grow sustainably and profitably, according to the CEO.
Conclusion
The automaker is banking on highly localized automobiles to aggressively keep prices down. They localized the powertrain and gearbox even before launching the first car, which no other manufacturer working there has done. Citro?n has now made small changes to its strategy based on its understanding of the market to expand its footprint globally.
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