French manufacturer PSA Group will enter the Indian market soon. With the rising popularity of SUVs in India, the group has decided to take a top-down approach while entering India. The manufacturer will first launch a premium SUV that will take on vehicles, such as the Jeep Compass and the Hyundai Tucson in India.
The manufacturer will launch the first vehicle under the Citroen brand in 2019. PSA is still working on the plans and a CBU-import model of the Citroen C84 concept SUV or Citroen C5-Aircross will become the first vehicle to make it to the Indian market. The highly competitive segment is currently led by Mahindra XUV, which is a 7-seater SUV. Jeep Compass overtook the sales of Mahindra XUV 500 initially, but the Mahindra XUV 500 bounced back after a facelifted model was introduced in the market.
However, unlike Jeep, the Citroen SUV will not enjoy a recognisable brand name in the Indian market, and therefore it will be interesting to see the price of the product. Interestingly, Skoda is also planning to launch the Karoq in the same segment soon.
Many active car manufacturers in India entered the market with the top-down approach. The PSA group is also expected to assemble vehicles at the Chennai factory at a later stage. PSA has joined hands with CK Birla for its Indian operations. CK Birla owns Hindustan Motors in India and has also sold the rights to use the “Ambassador” brand name to the French manufacturer.
PSA is also working on the Smart Cars project that focuses on the Indian market. The carmaker will launch two new cars – a compact SUV and a sedan, in India. India has become the fourth largest automobile market in the work and is set to grow further, in the coming years. There are quite a few manufacturers that are planning to come to India, including the Peugeot.