Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
September 16, 2021 06:00 AM

Citroen to launch New C3 for India, South America

First of three models intended to boost Stellantis brand's international sales

Peter Sigal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    The New C3, which was largely designed and developed in India, is just under 4000 mm long to ensure that it falls into a lower vehicle tax category in the market.

    PARIS -- Citroen is making a bid to expand outside Europe with the New C3, a small hatchback intended for the Indian and South American markets that will be launched in the first half of next year.

    The New C3 is the first of three Citroen vehicles designed for international markets that will be introduced in the next three years. 

    Citroen CEO Vincent Cobee said the Stellantis brand is seeking to increase its non-European sales to 30 percent from 15 percent currently.

    That would represent an additional 150,000 vehicles a year, he said, at Citroen's pre-pandemic sales pace of about 1 million units annually. Citroen sold 989,853 vehicles in 2019 and 717,190 in 2020. About 25 percent of the brand's sales are light commercial vehicles.

    "This product carries a lot of ambition, especially for the brand to grow internationally," Cobee told journalists on a conference call about the New C3.

    The New C3, which was largely designed and developed in India, is just under 4,000 mm long to ensure that it falls into a lower vehicle tax category in the market. It will be built in Chennai, with 90 percent local parts integration, as part of a joint venture between Stellantis and the CK Birla Group. 

    Citroen currently sells the C5 Aircross compact SUV in India, although it is assembled from kits exported from Europe. The New C3 will compete in India's most popular segment, with small cars holding a market share of nearly 25 percent. 

    PSA Group, now part of Stellantis, said in 2017 it was re-entering the Indian market through the CK Birla partnership.

    India, with a population of nearly 1.4 billion and a rising middle class -- but a vehicle ownership rate of well below 10 percent -- has long been a tempting target for international automakers. Analysts expect it will pass Germany and Japan in the next decade to become the third-largest market after China and the U.S. 

    According to the SIAM trade group, there were 2.43 million passenger vehicles sold in India in 2020. The market is dominated by just a few companies, with Maruti-Suzuki far and away the best-selling brand.

    According to figures from LMC Automotive, Maruti-Suzuki sold 97,537 vehicles in July, followed by Hyundai at 48,042, Tata at 30,185, Suzuki at 26,138 and Mahindra at 20,798.

    Renault was the top-selling European brand, in eighth place with 9,787 sales in July. Its best-selling vehicles include three developed for India: the Kwid, a small high-riding hatchback (a version of which is now sold in Europe as the Dacia Spring EV); the Triber, a seven-seat version of the Kwid; and the Kiger, a sportier small hatchback. It also sells a Renault-branded version of the Dacia Duster small SUV.

    But the market has proved frustrating for others.

    Ford, with just a 1.42 percent market share, announced last week that it was exiting India, closing its local assembly and engine plants and taking a $2 billion writedown. GM pulled out of India in 2017, and Toyota has recently said it will halt new investments there.

    "India is a very challenging and competitive market," Cobee said, adding that the keys to succeeding in high-growth markets included a high level of localization and managing costs and volatility. 

    Prior to joining Citroen in 2020, Cobee worked at the Renault-Nissan Alliance, where he oversaw the re-launch of the Datsun brand in developing markets.

    "We need to be pragmatic, progressive, reactive and adaptable," he said about Citroen's entry into India.

    Cobee noted that Citroen's partnership with CK Birla included converting "brownfield" plants to Stellantis powertrain and vehicle assembly, and that Stellantis was already exporting engines from India.

    "We're doing it in a step-by-step way to avoid burdening the business with costs that a launch phase will not support," he said.

    The interior has a 10-inch central touchscreen and built-in brackets for smartphones and charging cables.

    Aimed at Brazil, Argentina

    In South America, the New C3 will be built in Stellantis' factory in Porto Real, Brazil, where the C4 Cactus is now produced. It will be aimed at the Brazil and Argentina markets, the two largest in South America. 

    Citroen says that small hatchbacks account for 30 percent of the market in Argentina and 26 percent in Brazil. The brand's South America sales were 30,578 in 2020 and 51,252 in 2019.

    Stellantis' main push in South America is led by Fiat, which had a market share of about 22 percent in Brazil through July. Jeep, too, is surging in Brazil, where its market share hit a record 8.3 percent.

    In addition to Brazil and Argentina, the New C3 will be sold in Chile, Colombia, Ecuador, Peru and Uruguay. Cobee said Stellantis was working to combine operations from the former PSA Group and Fiat Chrysler in South America, with the expectation that platform-sharing would start within the next five years.

    Cobee said the New C3 would not appear in Europe but would contribute to growth in the Middle East and Africa region.

    The New C3 has short overhangs and extra body cladding to help protect against rough roads.

    Adapted for rough roads

    The New C3 has a family resemblance to the C3 hatchback and C3 Aircross SUV for the European market, but with more ground clearance, short overhangs and steeper approach and departure angles, it is designed to accommodate rougher roads in emerging and developing countries. 

    Extra lower-body cladding protects against rock chips and other road debris.

    Citroen says that 40 percent of India's 5.5 million kilometers of roads are unpaved.

    Citroen has not provided any information on powertrains yet, but Cobee said the New C3 used a significant amount of components from Stellantis' CMP platform, which underpins newer small cars such as the Peugeot 208 and Opel/Vauxhall Corsa (but not the existing C3 models).

    Inside, the New C3 has a 10-inch central touchscreen and compatibility with Apple Car Play and Android Auto. The dashboard is optimized for smartphone use with built-in clamps in three locations, and clips and channels to hold charging cables.

    Share
    Share
    Share
    Share
    Share
    citroen_c3_int_8.jpg

    The New C3 was developed with Tata Consulting and will be built and sold in India and other emerging markets, as Citroen seeks to reduce its reliance on European sales.

    Share
    Share
    citroen_c3_int.jpg

    The Citroen New C3 is the first car on Stellantis' Smart Car platform for emerging and developing countries, starting with India, where it is built in Chennai. The platform, derived from Stellantis' CMP architeture, is also able to accommodate an electric powertrain.

    Share
    Share
    citroen_c3_int_8.jpg
    citroen_c3_int.jpg
    RECOMMENDED FOR YOU
    VW's potential battery IPO attracts high investor interest, top shareholder says
    Recommended for You
    VW Battery production
    VW's potential battery IPO attracts high investor interest, top shareholder says
    cupra-born_01.jpg
    VW's Cupra brand weighs entering U.S. market with larger EVs
    The Ford Mach-E
    Ford expects to lose $3B on EVs this year
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us