The Daily Pulse

Automobile

Citroen eyes Indian plant to build 2CV electric hatchback for export

Reported by Pooja Nair (Section Editor) · Autocar India ·

Unconfirmed — Reported by one source so far

Reported by one source so far

Worth knowing
Citroen eyes Indian plant to build 2CV electric hatchback for exportPhoto: Wikimedia Commons

Citroen is assessing India as a production hub for the upcoming 2CV electric hatchback, a move aimed at keeping costs low for the car’s launch in Europe. The 3.76‑metre‑long 2CV concept was shown at the 2026 Paris Motor Show and is slated for a 2028 market debut with a European starting price of about €15,000. Industry sources tell Autocar India that the French brand may build the showroom version at its Thiruvallur plant in Tamil Nadu for both the Indian market and export. The evaluation follows Citroen’s recent announcement of an A‑segment vehicle for India and Stellantis’s fresh Rs 4,000 crore investment over the next three years to expand its Indian product line. Competing at the low end of the European market, the 2CV EV will face thin margins and fierce price pressure from affordable Chinese brands, prompting Stellantis to seek a cheap manufacturing base. India fits the brief. The Thiruvallur facility, now fully owned by Stellantis after buying CK Birla Group’s stake, already produces the C3, eC3, Aircross and Basalt with over 95 % localisation and exports to eight markets. Output is expected to rise from roughly 16,000 units this year to more than 43,000 by 2028, and the 2CV EV could help fill and expand that capacity. The recently signed India‑EU free‑trade agreement could further boost exports. Building the car cheaply will require a local EV‑component supply chain that is still nascent; the electric motor may be sourced from Leapmotor, a Chinese EV maker in which Stellantis holds a stake. Domestically, the A‑segment is shrinking, with strong players like Maruti Suzuki dominating and small EV sales such as the MG Comet staying modest, making India more likely a factory for global markets than a major sales destination.

Context

India has become a key low‑cost manufacturing base for global automakers, and the new India‑EU trade pact lowers tariffs on exported cars, encouraging firms like Stellantis to locate production for price‑sensitive models there.

Read more at Autocar India →