Why is Citroen India still not gaining volumes?

If you have a budget of Rs 8 to 10 lakh, will you as a customer consider the C3 over the Hyundai i10 Nios, Tata Punch, Maruti Swift, Renault Kiger or Honda Amaze?

BHPian cludflare recently shared this with other enthusiasts.

It has been exactly a year since the deliveries of Citroen’s much-awaited car for India, the micro-suv C3 began. I don’t know about experts, but I was heavily bullish on this product given the Indian obsession with SUVish design and the extraordinary success of Tata Punch from day 1.

This is easily a segment that will grow to 20 – 25K units a month with Hyundai’s Exter entering the space.

I know we can’t expect a new brand to generate trust right from the beginning, but C5 had been around for some time followed by C3. I admire the brand’s honesty (or foolishness?) to call out that C3 is not an SUV, it’s a raised hatchback. The country has been obsessed with anything followed by a UV all this while.

Through this thread, I intend to initiate some conversations like –

• Can we write this product off now? The last few months' sales figures of the C3 petrol certainly suggest so (April 2023 – 741, May 2023 – 600, June 2023 – 867)
• Was it the marketing / branding / advertising that lead to this, or was it the multi-pronged focus around EV, aircross etc?
• If KIA can enter and create havoc with a new brand and just a couple of products, where did the French brand go wrong – given the dismal performance of both C3 and C5?
• Is this too early for new brands to play the EV game without safely establishing their IC products in India?
• I believe the urban customers were more open to taking chances with new OEMs with limited service centers in the country. The sales of C3 don’t suggest so.
• If you are on an 8 to 10 lakhs budget, will you as a customer consider C3 over the likes of i10 Nios, Tata Punch, Swift, Kiger or Amaze?

Pardon the corporate-ish writing style using bullets and pointers. I think this comprehensive product and its failure to shine deserves some attention.

Here's what GTO had to say about the matter:

Citroen has terrific cars, but a complete dud of a strategy behind each of them. The French really don't get India. They thought India is a "low cost" market, tried an approach comparable to Datsun and launched the Citroen C3 without alloy wheels, a tachometer, reversing camera etc. No automatic transmission offered in a market that is greatly moving to ATs & merely 2 variants at launch (C3 Aircross apparently coming up in a single variant!!).

The C3 1.2 Turbo has a superb engine & lovely suspension. It's so much fun to drive. But with all the cost-cutting & features mess-up, it didn't have a chance. Same approach with the C3 Electric which doesn't even get a cooled battery & low power ratings - it makes the Tiago EV look like it's a full segment above in terms of tech & features.

Another grave error is Stellantis not forcing Jeep & Citroen to combine their dealership strength. Jeep has a limited dealer network in India, and so does Citroen. They are part of the same group. Split up existing showroom spaces between the two (70:30 ratio), or sell the two on the same floor. But both brands never agreed to it.

The C5 Aircross is such a brilliant product. Citroen should have sold it at a loss and written off the expenses as "brand building".

Here's what BHPian AYP had to say about the matter:

The only reason I will even consider the C3 is the 1.0 turbo. While I am an engine guy, it does not mean that I will go for a box on wheels with a nice engine. There is a line, and the C3 with no tachometer while costing more than 10L rupees is on the other side of this line.

The thing is that for the price of the C3 turbo, I'd rather get the Magnite Turbo or the Altroz diesel XM+ which shall not make me feel shortchanged while sitting inside the car. In fact, it is not just the lack of features but the design itself which makes the car look and feel 'cheap'. I think that Citroen's approach to making cheap cars is hurting them. Indians want cars which offer them 'value'. We all know what happened to Nano due to its image.

A real dilemma will be choosing between let's say an Exter or Punch NA vs the C3 turbo. But considering the price of the C3 turbo, such a dilemma wouldn't exist for me since I don't mind going for the Magnite or the Altroz.

I see the same thing happening with the C3 AirCross (unless they price it exceptionally well) which though is better equipped than the C3, shall also compete in a higher segment. It does look swell though, that I acknowledge and the Turbo engine should be better to drive than the NA competitors.

While I don't want to explicitly state that C3 is gonna be out (since more competition is better for us consumers), I am unable to find any reason to not say the same.

Here's what BHPian fhdowntheline had to say about the matter:

You can't exclude basic stuff like RPM gauge, rear wiper, even as an option, now corrected), climate control (higher trims), and electric ORVMs. Citroen is not Maruti to get away with it. When you are establishing yourself, you don't have much leeway. If pure engineering were to sell, then every 10th car in India would be a Jeep Compass.

Here's what BHPian ssoni.1411 had to say about the matter:

I believe Citroen in general failed because they did a lot of cost cutting, i.e. they didn't have a proper top model on launch. KIA had an instant success because they chose the right segment and gave every single feature, transmission and engine to the Indian customers and they also took advantage of the entire R&D done by Hyundai all these years.

Even if you look at Seltos facelift, it was first spotted in April and launched in July weeks before Elevate started its media drives. Honda too is feeling the heat because of the features and competitive pricing of Seltos. Sonet facelift was spotted too testing and it will mostly be launched by Diwali at the time of Nexon Facelift. KIA has been working step ahead of other manufacturers to stay relevant and fresh in the market.

Anyone having a budget of 8-10 Lakhs will go towards an established brand that has been around for a long.

If you look at the Exter, the fit, finish and features make it look more premium than the Punch.

Check out BHPian comments for more insights and information.