[Quicksilver85]

Today I went to drop my Compass to PPS motors, Electronic city for 2nd year service.
Adjoining to the same service center is the Citroen showroom, La Maison Citroen which belongs to the same PPS group.

I was in for a surprise, when I casually went to check out the Citroen C3 models (C3 & C3 Aircross), the person on the showroom informs me that they are shutting down the dealership and those 2 cars on the floor are already sold off too!

Not sure what to make of this. But, many thoughts running in my head,
1. PPS motors owns multiple showrooms of different brands in different cities (Jeep, Citroen, VW, Tata to name a few). Such group deciding to shut down their Citroen dealership sounds alarm bells to me on Citroen India's future. I do not know the entire story, I am just guessing here and my apprehensions might be wrong.
2. The Citroen showroom is a new one that came up just 2-3 years back, where Jeep showroom used to be. Does that mean, the showroom space will be back to Jeep showroom? (I doubt this, as the PPS Jeep sales showroom is now near HSR layout, ORR). I dont think, there is enough sales to maintain 2 separate Jeep showrooms within a vicinity of 5-10 kms from each other by the same dealer.
3. I am thinking, maybe PPS group will open a dealership of a different company whose potential sale figures might be higher than Citroen and it was just a business decision.

What do you guys think?

[Zinger_Winger]

Originally Posted by Quicksilver85

What do you guys think?

Believe me when I say this, In the entire span of 3 years, I'm yet to see a Citroen on the streets of Mumbai, and I stress that I truly am not over-exaggerating.

It's truly disappointing to see this company that could've made a big bang with features, off the charts marketing and by making & showcasing safer cars too, go the route of cost-cutting, taking the Tata Nano route and also skipping automatic gearboxes, right when people were massively shifting to auto-boxes. This, especially when a company such as Citroen, who fundamentally makes great driving/feeling cars abroad (from what I hear).

Like GTO has repeatedly said, they could've massively studied and leveraged on experience from Stellantis sub-groups like Fiat and Jeep, but Alas! they will inevitably soon take the Opel/Fiat route and exit India, leaving us to the wafer-thin bodied (compromised safety) Koreans/Japanese and ill-managed Germans only.

[guptad42]

Originally Posted by Zinger_Winger

...
but Alas! they will inevitably soon take the Opel/Fiat route and exit India, leaving us to the wafer-thin bodied (compromised safety) Koreans/Japanese and ill-managed Germans only.

Citroen brand/product planning/marketing is actively hurting the company, but the industrial operations side seems better planned. They have set up significant sized plants in India for cars and drivetrains mainly for exports. The India volumes are a rounding-off error for them at this point. So if Stellantis group can hold on to their markets for exports from India, their India presence could be despite India market sales!

Globally, Stellantis seems to be equally clueless. Stellantis group is losing sales volumes in major markets like North America and China because their car models are not in tune with local market needs. This is a car group that seems to be in trouble across the world. Not a company/group worth betting your money on, despite owning iconic brands.

• North America first quarter (Jan-Mar) sales reports just came out. Stellantis sales are down 10% compared to 2023. Despite the fact that 2023 was a sales disaster for them anyway, with Stellantis doing a down year when other carmakers had a good growth year. Stellantis pick up and crossover sales are down while Toyota is up. Stellantis is sitting on remarkably high inventories relative to sales.
  
• Stellantis CEO is promising transformation in 2024 using EVs, when their main competitors are growing with hybrids. And, Stellantis don't yet have an EV model to fight with the model3+modelY combo. Stellantis global EVs may get some initial sales, such as from the intersection of people who want a Jeep and are interested in EVs. But growth in EVs needs competitive products along with design and manufacturing to keep costs low. So far, Stellantis does not have the capability to make competitive EVs at low cost, which means they will lose money per car fighting the product & cost leaders like Tesla and BYD.
  
• In Europe, Stellantis CEO has publicly lobbied against EVs and against stricter emissions standards for ICE cars. It made no real difference to Europe's regulatory direction but ended up painting Stellantis as a company not yet ready for EVs in the consumer mind. Talk about cutting off your own nose to spite your face. The brand damage will continue to hurt them.

[itwasntme]

Originally Posted by Quicksilver85

3. I am thinking, maybe PPS group will open a dealership of a different company whose potential sale figures might be higher than Citroen and it was just a business decision.

Could well be BYD as PPS is quite bullish on them.

[sleepyhead148]

Originally Posted by Quicksilver85

What do you guys think?

Have it on good authority that Stellantis is merging Jeep and Citroen showrooms and letting go of the "La Maison Citroen" centers. That's what is happening and will be fully rolled out around the time of Basalt launch.

[anilntny]

Here in Kerala, am seeing more Citroen cars than before. Especially C3 aircross and eC3s are slowly taking pace. May be all new Basalt is going to turn turn tides for them.

[Aditya]

Citroen Bangalore Dealership is already shutting down! Posts moved to a new thread.

[anjan_c2007]

Would the Citreon India saga or alternatively (with an optimistic outlook) success (?) be a lesson in marketing for Stellantis ?

After all, can sales of just a few hundred units a month sustain a mass-produced automaker in India?

And they had paid some Rs 80 crores to Hindustan Motors in 2017 for usage of its Ambassador brand! Was the brand bought to finally rest it in peace ? Seven years on, and still there's nothing in the media about such a sedan project on the Stellantis pipeline.

[Sensible_Speed]

What about the one in Miller's Road? It still has the signage and the show models parked inside, but everytime I went to check the C3 out, it was closed (I frequented it almost thrice a week). Have they shut shop too, or is it something else?

[skpprabhu]

I dont think PPS is shutting down because of low volumes. Infact PPS was the first dealership to reach 1000 cars in quick time and they were celebrating it. I got my C3 Turbo from PPS hosur road and whenever I visited their showroom it was quite busy. As Citroen has announced they are coming up with new delaerships and some realignments are happening with their existing dealerships as well. For Bangalore it is said that some other dealer is going to take it up and we will come to know soon. It is common for other brands as well and I dont think this is a panic situation at this point of time.

[Quicksilver85]

Originally Posted by sleepyhead148

Have it on good authority that Stellantis is merging Jeep and Citroen showrooms and letting go of the "La Maison Citroen" centers. That's what is happening and will be fully rolled out around the time of Basalt launch.

That's interesting! Traditionally, if you look at Jeep model range it starts from upwards of 25L for base compass sport variant. They didn't have anything below that figure. Interesting to see how this strategy would pan out if your words are indeed true. Lets wait & watch, Basalt launch is around the corner anyways.

[neerajku]

After years of research two dud products. Wonder what kind of leadership they hire. Wrong pricing, poor products, no symmetry with competition. We will forever be dependent on our Asian and domestic leaders for our cars.

[Quicksilver85]

UPDATE FROM JEEP SERVICE STATION

I spoke to someone from the Jeep service center (Person prefers to be anonymous), they informed me that the owner of the current Citroen dealership was not happy with the sales numbers and decided to shut down. It seems a new dealer has been appointed since PPS backed out and they would set up a new dealership in Bangalore (No details on the location was shared). Maybe PPS group might be interested in BYD as others are speculating, but, it was not clear from the conversation.

Looks to me that only the dealer/dealership has changed hands here. I presume existing customers might have to get their cars serviced in other dealership service stations.

[pd1108]

The only benchmark for companies is the quarterly valuation figures. In the process, the consumer interest comes last. This is the scary part for consumers who wish to invest in big-ticket expenditures like mid to semi-high-range cars. (the buyers of high-range cars do not bother as much). The consumers now understand this and prefer to buy from companies which have a staying mindset, the large sellers like Maruti, and Hyundai and the local players like Tata and Mahindra.

As long as new players like Citroen etc. get over the quarterly valuation mindset and focus more on the long-term staying game, and the consumers start to experience the change, they are unlikely to go beyond - they also run category, often to run away like the GM, Ford and others.

This is the reality of the car market I believe, especially in these difficult economic climates for the bulk of the people

[salluks]

The showroom in Cunningham road is also shut down.