Citroën expects tier-2, tier-3 and smaller cities to account for three-fourths of India sales within five years, up from around 55 per cent currently, as reported by Business Standard. According to Shailesh Hazela, chief executive officer and managing director of Stellantis India, the company predicts that the mass market for cars is shifting to these smaller urban centers. Jeep, Stellantis's other brand, will remain more focused on Tier-I and Tier-II cities and metros, with the strategy backed by a retail network tailored to individual market potential rather than a uniform dealership model.
The company currently operates close to 300 touchpoints in India, including around 175 for Citroën, but Hazela emphasized that Stellantis is more focused on reaching customers than simply increasing the number of outlets. Under the new model, the company could start with a small showroom to test demand before investing in a larger facility. A market with a population of 100,000 may not need a conventional six-car showroom, instead deploying a one-car showroom and smaller service facility, with formats changing according to sales potential and local vehicle population.
Citroën's volume sales are expected to grow at least 15-20 per cent year-on-year in the second half of FY27, according to Business Standard reports. This growth would be lower than approximately 60 per cent Y-o-Y growth recorded in the year-to-date period due to high base effect. The company has currently reached around 60 per cent of its addressable customer population through its network and wants to take this to 75 per cent. Stellantis's wholesales in the April-July period stood at 2,920 units, a 64.4 per cent Y-o-Y growth, as per Society of Indian Automobile Manufacturers data.
The company has exported around 4,500 vehicles so far this year and plans to expand into several additional overseas markets, currently exporting to South Africa and Indonesia. According to Business Standard, Stellantis is using India as the starting point for products that can subsequently be sold in other markets, with localisation in India above 90 per cent. Hazela expects the overall automobile industry to grow 5-7 per cent Y-o-Y in the second half of FY27, supported by rising disposable income, better road infrastructure and easier access to financing.
Stellantis is preparing for tighter vehicle regulations in India, including the next phase of Corporate Average Fuel Economy (CAFE) rules. Hazela noted that the technology needed to meet tighter rules is not the main challenge for a global company like Stellantis, but keeping vehicles affordable as regulatory requirements add to manufacturing costs will be the bigger issue. He pointed to instances where new regulations have increased vehicle prices by ₹1 lakh-2 lakh, and customers may not accept such increases if they do not see a clear benefit.
