Groupe PSA likely to enter Asia with a Citroen SUV in 2019 to build brand image before the launch of mass-market models.
The SUV segment in Asia is growing and how! The overall passenger vehicles segment in FY2017-18 grew at 8% while the SUV segment registered a growth of 21%. With this in mind, French carmaker PSA has decided to follow the top-down approach for the Asian market. It will first drive in an imported Citroen SUV in 2019 to build the brand image before launching the mass-market models in the next two years.
According to sources, the automaker is planning to launch the Citroen C84 or the C5 Aircross in Asia. The company is considering assembly of the vehicles at its Chennai facility. However, that is yet to receive a final approval. The C5-Aircross will rival the Jeep Compass, Hyundai Tucson and the upcoming Skoda Karoq and the Tata H5X. PSA is likely to set up five ‘Destination’ or ‘Experience Stores’ across major cities in the country.
Groupe PSA has hired TCS to design and develop products for the Asian market in an attempt to compete against Maruti Suzuki and Hyundai and is keeping its momentum going on its Smart Cars project. As part of the Smart Cars project, the company is expected to introduce a couple of compact SUVs and sedans in the Asian market. The company has already started building its core team for the brand rollout and has hired quite a number of officials from the auto industry.
PSA Asia Entry
– Groupe PSA to enter Asia with a Citroen SUV
– Likely to introduce the C5 Aircross
– Groupe PSA is the second largest automaker in Europe
– The company is systematically building its presence in Asia