World · India Bureau
Citroën aims to triple smaller-city revenue share to 75% in five years
French automaker Citroën is shifting its growth strategy to prioritize tier-2 and tier-3 cities, planning to increase their contribution to total sales from the current 55 percent to 75 percent within the next five years.
LSN India ·
Citroën is recalibrating its India business strategy to tap into emerging automotive markets beyond metropolitan centers. The company aims to boost revenue from smaller cities and tier-2 and tier-3 urban centers, recognizing the growing purchasing power and demand for personal mobility in these regions.
Currently, these smaller urban centers account for approximately 55 percent of Citroën's India sales. The automaker's ambitious five-year target would see this proportion jump to 75 percent, representing a significant shift in the company's geographic revenue distribution.
The strategic pivot reflects broader industry trends in India's automotive sector, where growth in smaller cities is outpacing that in major metropolitan areas. Rising disposable incomes, improved road infrastructure, and increasing aspirations for personal vehicle ownership in tier-2 and tier-3 cities are driving demand for affordable and practical vehicles.
Citroën's move involves tailoring its product portfolio and distribution network to meet the specific needs and preferences of consumers in these markets. The company's focus on value-for-money offerings and localized dealership expansion are expected to support the growth trajectory in India's secondary and tertiary urban centers.