What's Going Wrong with Citroën in India? (And What They Can Do Now)
Citroën entered India with ambitious plans but now finds itself in crisis. A full-fledged dealer revolt is brewing, and its Indian operations are failing to gain traction. Sales figures paint a bleak picture, and dealers are demanding urgent intervention as they bleed money month after month. What went wrong for Citroën in India, and is there a way forward?
The situation is dire, with dealers penning a desperate letter to Citroën India's management, expressing frustration over missed sales projections, feature-deficient cars, and a lack of clear strategy.
Despite launching multiple models, the brand has failed to connect with Indian buyers. Frequent management shake-ups, a flawed initial retail strategy, and an apparent lack of understanding of local market preferences have led to underwhelming sales.
Here's an open letter that Citroen dealers have reportedly sent the company,
Dealers, who have invested crores into Citroën showrooms and service centres, are seeing mounting losses and little to no support from the company.
Some have already exited, and many others are contemplating shutting shop. The sentiment is that Citroën is not fully committed to making India a serious growth market but is instead using it as an export hub.
Sales Figures and Market Response
A look at Citroën's sales figures in India underscores the severity of the crisis. Comparing full-year 2024 sales with early 2025 numbers highlights a clear lack of demand.
Model 2024 Total Jan 2025 Feb 2025
Citroën C3 3,452 242 110
C3 Aircross 2,891 107 43
eC3 1,230 (Not listed separately) (Not listed separately)
C5 Aircross 110 0 1
Basalt (Not launched) 61 37
Total 7,683 410 191
The C3, despite being positioned as a budget-friendly hatchback, failed to take off due to missing features and an unimpressive value proposition. The C3 Aircross was expected to be a serious competitor in the SUV space but lacked essential features when launched. Even the premium C5 Aircross suffered from an excessively high price tag, which deterred buyers. The eC3 found some traction with fleet operators, but that alone is not enough to sustain the brand. The recently launched Basalt has also struggled, reinforcing the perception that Indian customers are unwilling to take a chance on Citroën.
What Went Wrong?
Citroën’s troubles in India started from the outset. The brand attempted an unconventional retail strategy by initially bypassing traditional dealerships and relying on the ‘La Maison’ studio format with online sales. However, Indian buyers strongly prefer a hands-on experience before purchasing a car, and the digital-first model failed miserably. This miscalculation set the tone for the company’s struggles.
As reality set in, Citroën scrambled to establish a dealer network, but by then, brand perception had already taken a hit. Even when the dealer network was expanded, sales did not pick up because the products themselves were unappealing to the market.
Each new model launch followed a predictable pattern: an underwhelming product with glaring omissions, poor market reception, and sluggish sales. The C3 hatchback was criticised for its lack of features, yet Citroën followed it up with the C3 Aircross, which had similar issues. Even something as basic as cruise control was missing at launch. By the time updates were introduced, customer interest had already faded. Indian buyers do not easily forgive or forget initial missteps, and Citroën has struggled to regain credibility.
Beyond product issues, management instability has further damaged Citroën's prospects. Since entering India, the brand has seen multiple leadership changes, with key figures departing frequently. This lack of consistency in strategy has left dealers and customers uncertain about Citroën’s long-term plans. Adding to the chaos, the parent company Stellantis has undergone global leadership changes, making India’s future within the company’s strategy even more uncertain.
The cost structure for dealerships has also been an issue. Setting up a Citroën dealership requires a significant investment—between ₹5 crore in smaller towns and up to ₹20 crore in metros. Yet, dealers have seen extremely low sales, making profitability nearly impossible. With Stellantis setting an annual sales target of just 20,000 units, the math simply does not work for dealers who expected much higher volumes.
The Way Forward
Despite the grim situation, Citroën can still turn things around, but it will require decisive action and a complete overhaul of its strategy. First and foremost, the company needs to address its dealer concerns immediately. Dealers cannot continue to operate at a loss, and Citroën must introduce financial support measures, including incentives, better margins, and marketing cost-sharing, to prevent further exits.
On the product front, Citroën must stop treating India as a low-cost market and start offering vehicles that deliver strong value. Simply cutting prices is not enough—buyers today expect modern features, safety, and a premium feel even at lower price points. The company must also ensure that new models are launched with competitive feature sets from day one rather than relying on later updates to fix initial shortcomings.
Marketing and brand perception need a major revamp. Right now, Citroën lacks strong recall value among Indian buyers. The brand must invest heavily in awareness campaigns, influencer partnerships, and experience-driven promotions to improve its image. Without a strong emotional connect, customers will continue to overlook Citroën in favour of more established brands.
Finally, Stellantis needs to clarify its commitment to India. The current uncertainty, with global leadership changes and a lack of clear direction, is doing immense damage to dealer confidence. Citroën must make a strong, public commitment to the Indian market and back it up with visible action, including R&D investments, better localisation, and a steady pipeline of relevant new models.
Citroën’s Indian journey has been marred by strategic missteps, poor product decisions, and lack of commitment. Dealers are in open revolt, sales are dismal, and the brand is struggling to justify its presence. Without urgent corrective measures, Citroën risks becoming yet another foreign automaker that failed in India. However, if it acknowledges its mistakes and takes bold steps to address them, there is still a chance to salvage its Indian operations and carve out a niche in the highly competitive market.