Citroen C5 Aircross India launch postponed to Q1 2021

THE MOST SEXIEST SUV EVER MADE

Groupe PSA has just announced that the India launch of its Citroën C5 Aircross will be delayed due to the ongoing novel coronavirus/COVID-19 pandemic. We had earlier reported that this SUV will be brought into India as a CKD by late 2020. However, the price announcement will now take place sometime in January-March 2021. The statement from the French brand reads, “The re-timing is aimed to move the commercial launch to a potentially more positive economic activity period where consumer sentiments are upbeat.”

Considering the Citroën C5 Aircross will cost upwards of Rs 30 lakh ex-showroom (as it will be locally assembled, not locally made) the French firm doesn’t plan on selling large numbers of this SUV. Instead, the brand is pinning its hopes on the made-in-India models from Citroën’s ‘C-Cubed’ programme to be the volume sellers. These models will have a high level of local content – the C21 compact SUV is expected to achieve 90-95 percent localisation, which could mean starting prices of about Rs 7 lakh.

This will mean that the C5 Aircross will be quite a bit pricier than SUVs such as the Tata Harrier and MG Hector, which are both slightly larger than the 4.5m-long Citroën. The French brand hopes that the SUV’s funky design, diesel engine (131hp 1.5-litre and 180hp 2.0-litre units are under consideration) and cabin comfort will whet the Indian buyer’s appetite enough, that when the locally made models arrive, they’ll be gobbled up. Our own REVIEW OF CITROEN C5 AIRCROSS showed that the SUV definitely holds promise.

Prior to the lockdown, Citroën’s dealership network was in the process of being set up, with the 1ST SHOW ROOM IN GUJRAT almost ready by the end of February. 10-15 Citroën outlets –- all of which will be based on the brand’s ‘La Maison’ concept – were said to be in the first phase. To know more about what the ‘La Maison’ concept isCitroen has some big plans for India, but this doesn’t necessarily mean large dealerships for the brand. The company says it’s fine with setting up showrooms spanning just 150 sq mt in area, contrary to the current norm of setting up big, multi-storied showrooms.

Citroen says its data shows that customers visiting showrooms prefer spending their time behind the wheel, as they've done a chunk of their research at home. With this in mind, the firm launched its ‘La Maison Citroen’ concept in France in 2017, and today it has 17 such outlets worldwide. When Citroen enters India, the dealerships here would adopt this new model as well as the ‘La Maison’ branding right from the outset. 

La Maison, which means ‘home’ in French, uses wood and earthy tones accented by bright highlights to create a warm and inviting atmosphere. There's also a highly interactive virtual system via which users can configure their cars at home and then carry on the configuration process in the showroom. The focus here is on outstanding customer experience, driven by digital tools and a feeling of warmth rather than sheer size.

Citroen says the format works with just two cars on display, a tech wall and a small café and discussion area. Speaking at La Maison Citroen in Paris, Joel Verany, Vice President Distribution Strategy and Network Development Citroen India, said, “Data from all these 17 showrooms consistently shows higher customer satisfaction scores than the levels in our older style, larger showrooms.”

A smaller size actually helps bring about a cozy feeling, plus it also lowers the dealers required investment, thus improving the business plan. This is especially the case in large cities where real estate costs in prime display locations can run sky high. However, for a new brand in India, this approach could also pose some challenges.

Citroen isn't a well-known brand in India, and customers often tend to associate the size of a showroom with the size and stability of the brand. This could work against Citroen here – a market driven by a ‘play safe’ attitude when it comes to car purchases.

In any case, Joel says the company isn't limiting the size of the showrooms; 150 sq mt is only the minimum required amount. Further, the company said they will also invest in building the brand. Arnaud Belloni, Marketing and Communication Director of the company said, “We will invest in building our brand in India and we are open to all options right from the conventional ads and endorsements, talking about our French roots to even other avenues like festivals and motorsports where we have a very strong heritage.” He further added that while motorsports may seem like an unlikely angle for India, it can easily convey the durability and ride quality Citroen cars are known for.

The company is currently on a dealer roadshow and expects to have dealers identified this year itself, with the first car, the C5, set to hit the roads sometime later next year.