Citroen is evaluating India as a potential production base for the production version of its 2CV concept, with the vehicle intended for both the domestic market and exports, according to industry sources cited by media reports.

The company unveiled the 2CV concept at the 2026 Paris Motor Show earlier this month. The 3.76-metre-long concept previews a small electric hatchback scheduled to launch in Europe in 2028, with a starting price of around EUR 15,000 (US$ 16,830).

The potential production plan follows Citroen's confirmation approximately a week earlier that it intends to introduce an A-segment car in India as part of its product strategy through 2030. Its parent company, Stellantis, has also committed an additional investment of Rs. 4 billion (US$ 42.12 million) over the next three years to support its product expansion in the country.

Why India?

Cost is a key consideration in the proposal. The 2CV EV will compete in the entry-level segment of the European market, where profit margins are limited and competition is increasing. Chinese brands offering lower-priced vehicles have expanded their share of the European market, prompting Stellantis to consider a lower-cost manufacturing base to compete on price.

India is one of Citroen's production hubs outside Europe, alongside Brazil, for its C3 family of vehicles. The Thiruvallur plant in Tamil Nadu, now wholly owned by Stellantis following its acquisition of the CK Birla Group's stake, manufactures the C3, eC3, Aircross and Basalt, with a localisation level exceeding 95%. The facility exports vehicles to eight markets, and Stellantis plans to increase production from approximately 16,000 units in 2026 to more than 43,000 units by 2028. Production of the 2CV EV could utilise existing capacity and require further expansion.

Trade policy could also affect the decision. The India-EU free trade agreement, concluded earlier this year, is expected to influence the cost competitiveness of exports from India to Europe over the longer term.

The challenges

Producing the 2CV at a competitive cost in India will depend on developing a local supply chain for EV components, which remains at an early stage of development in the country. Initially, components such as the electric motor could be sourced from Leapmotor, the Chinese electric vehicle manufacturer in which Stellantis holds a stake, to help manage production costs.

The potential for domestic sales presents a separate challenge. Although India has traditionally been a small-car market, the A-segment has been contracting and remains difficult for manufacturers to enter. Hyundai's Eon and second-generation Santro did not achieve sustained sales in the segment. Mahindra and Toyota do not participate in this category, while Maruti Suzuki has a presence through the Alto and S-Presso. Tata Motors offers the Tiago with both internal combustion engine (ICE) and electric powertrains.

Small electric cars have also faced sales challenges. The MG Comet, one of the closest equivalents to the proposed 2CV EV currently available in India, records monthly sales of approximately 1,000 units. Pricing is another consideration. A vehicle priced at EUR 15,000 would cost substantially more than the entry-level EVs purchased by Indian consumers. The 2CV would therefore require cost reductions and extensive localisation to compete in the domestic market. The relationship between vehicle size and price also influences demand in this segment. Based on these factors, India could serve primarily as an export-oriented production base rather than a major market for the car.

An earlier proposal

In the late 1980s, Escorts sought to establish an agreement with Citroen to manufacture the original 2CV in India and approached the government for a licence to proceed with the project. At the time, the Indian automotive industry had not yet been delicensed, and Escorts did not receive approval for the proposal.

The original 2CV was manufactured between 1949 and 1990 as a low-cost car intended for people on low incomes. It was designed to carry four occupants and 50 kg of luggage at modest speeds.

During development, Citroen stipulated that the vehicle should be capable of carrying a basket of eggs across a ploughed field without breaking any, reflecting the company's focus on ride quality. By 1950, waiting periods for the car had extended to several years. The new concept retains design elements such as round headlights, a curved roof and a fabric sunroof, while replacing the original air-cooled twin-cylinder engine with an electric motor.

Additional Citroen models planned

Beyond the 2CV, Citroen plans to introduce a C-segment SUV and a D-segment MPV in India by 2030. These models will join the existing C3, eC3, Aircross, Basalt and C5 Aircross line-up. Citroen will also lead Stellantis' expansion into the compressed natural gas (CNG) segment in India.

The eC3 remains Citroen's current focus in the electric vehicle segment. Stellantis India chief executive officer Shailesh Hazela declined to confirm whether an electric version of the Aircross is planned. Hazela stated that Citroen is increasing its investment in local marketing and dealer-led activities while developing lower-cost showroom and service formats. He said the company would invest in products, manufacturing, localisation and customer experience.