Stellantis aims to take early lead in India’s EV market with Citroën

Tavares said the company may also explore opportunities to export EVs made in India to European markets, but no decision has been taken so far, which will lead to a review of operations at Citroën’s Hosur and Tiruvallur factories in Tamil Nadu. Was in India.

Car manufacturers in India will have to adhere to stricter emission norms, which will require a gradual shift away from conventional combustion engines towards more fuel-efficient products such as electric vehicles to reduce their carbon footprint.

Amsterdam-based Stellantis, which has a portfolio of 14 automotive brands including Jeep, Peugeot and Maserati, sells cars in India under the Jeep and Citroën brands.

Citroën, which will enter the Indian market with its first product in 2021, is preparing to launch the electric version of its premium hatchback C3 early next year. The brand’s two products, the C5 Aircross and the C3, have a market share of 0.5% in India.

“Most of the time, I see the consumer doesn’t decide on EVs. It’s made by regulations. Regulation is going to affect your freedom of mobility and your lifestyle. Why should we enter the EV market now? Because regulations Gonna steer the market in my direction. If my market share in India is 0.5% and I can get 10% in EVs, when the market mix shifts from internal combustion (IC) engines to EVs, I’ll surf the wave I will,” he said.

Tavares said EVs currently cost about 40% more than conventional cars. To achieve price parity between IC engines and EV vehicles in 4-5 years, the supply chain will have to bear about 85% of the total production cost.

“Volatility in raw material cost and availability is going to be a big issue for electrification. Tavares said lithium, nickel and manganese are going to become scarce because of a significant ramp-up of electrification, which is happening in some places.