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PSA to partner with Indian Tata to create low-cost vehicles for emerging markets

PSA to partner with Indian Tata to create low-cost vehicles for emerging markets

France’s largest car manufacturer PSA has commissioned Indian outsourced R & D company Tata Consultancy Services (TCS) to design low-cost vehicles tailored for the purchasing power of customers in India and other emerging markets.

PSA CEO Carlos Tavares spent 3 days there in mid-April to monitor the progress of a program based on the development of a new platform dedicated to a manufacturing price twice as low as that in France. Tavares indicated, at the end of April, at the general meeting of the group, that “India will be the point of convergence and industrialization of the future family ‘smart cars'”.

The low cost, a new adventure for PSA

Unlike Renault, PSA has never tried the adventure of low cost, fearing for a long time to compromise the upmarket strategy of its brands. To conquer the markets of some emerging countries, particularly around the Mediterranean, it has so far opted for an intermediate solution by offering more affordable vehicles, such as the Peugeot 301 or Citroen C-Elysee.

At Renault, the low cost range – whose history goes back to the first Logan launched 14 years ago – has become a true weapon of conquest around the world. With this experience, the diamond group went even further with an ultra low cost car, Kwid, marketed since 2015 in India and since last summer in Brazil.