If you've been following automotive trends, you'd be aware that carmakers are being encouraged to make only electric vehicles (EVs) instead of internal combustion engine (ICE) cars.

However, this switch is unlikely to happen until after 2030, according to Christophe Musy, Stellantis' Senior Vice-President for Asean & General Distributors. That's because the pace of electrification differs not just from region to region, but from country to country as well. The pace is rapid in Europe and Singapore, but just beginning in Southeast Asia.

A global carmaker like Peugeot caters to diverse markets with various requirements, so it has to produce vehicles with various powertrains. However, this cannot go on indefinitely.

According to Christophe, Peugeot will maintain ICE models alongside BEVs from now till 2027 or 2028. Beyond 2030, he presumes part of the model range will be EV-only.

"From next year, every Peugeot launched will have a BEV version. I think it will be the same for most Stellantis brands," he tells us.

Scale, volume, and distinction

Stellantis is an entity that was created when Fiat Chrysler Automobiles (FCA) merged with the PSA Group. Stellantis currently has 14 car manufacturers under its umbrella.

Like Stellantis, other major players in the automotive industry today are also large groups with multiple brands under their belt. "This car industry is a cost industry. You cannot survive as a single brand," says Christophe.

As part of a larger entity, a car brand will have access to group technologies, parts, and most importantly, scale. "We need to share parts. You need scale and volume to make your car affordable," he explains.

Herein lies the main challenge, though. The sharing of technologies and parts between automotive marques in a group means a lot of models will have the same powertrains and features. Differentiation becomes key, especially for Peugeot and Citroen, which are very closely related.

"Peugeot and Citroen share the same powertrains, but the suspension tuning will be very different. In Citroen, it is very oriented towards comfort, while in Peugeot it is more towards handling."

Both brands also differ in terms of design, price and equipment. Peugeot is positioned a bit higher than Citroen. And their brand values are different as well. "For Citroen, it is about accessibility, whereas for Peugeot, it's about allure," he says.

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A move away from SUVs?

Peugeot's latest model, the 408, has a fastback-crossover body style. It's interesting that the brand, which has become relatively known for the SUVs in its lineup, decided to go in this direction.

We asked Christophe if Peugeot anticipated a growing demand for this kind of model. "It's a very good question. It's something we have asked ourselves for the past three to five years. What should be bring to the market now after the SUV boom?" he says.

The answer, according to him, is not to replace SUVs, which will continue to be in the majority. But he also believes there is a growing segment of buyers, some of whom have owned several SUVs, who are seeking something different, "something lower, less boxy, and with better handling. The 408 is avant-garde, eye-catching, and a bit more dynamic."

That said, Peugeot doesn't have a specific target consumer in mind for the 408. In Europe, 408 customers include those who have owned luxury models from BMW, as well as drivers who are moving from a smaller to a larger vehicle.

"There are also customers who say they want a more stylish car, but they don't want an SUV. The 408 is a good compromise between a small car and an SUV. I hope that will be the case in Asia as well," says Christophe.

Interestingly, the 408 is currently only available as a petrol model or a PHEV (plug-in hybrid electric vehicle). The full electric version will only follow later.

Christophe explains that this is because when Peugeot decided to produce the car, the pace of electrification wasn't as quick as it was now, but that they are trying to catch up as quickly as possible.

"To be fair, not every country is ready for BEVs. Singapore is an exception because it is more advanced. Even in Europe, only 15 per cent of the car market is BEV. It's rising, but 85 per cent of drivers still need ICE, PHEV, or hybrid cars."

Future design direction

Peugeot is known for producing cars with distinct, avant-garde designs. But the carmaker is keen to push the envelope, and signalled this intention when it unveiled the Inception concept.

The Inception will influence the design of future Peugeot models. Elements from the car will supposedly appear in cars that will be launched in 2025 and 2026.

However, despite its futuristic looks, the Inception is actually inspired by past Peugeot models. "If you look carefully, you'll see inspiration from the 505, and from other models from the 1970s and 1980s. It's heritage, plus avant-garde, and new technology," says Christophe.

He continues, "and if there's one thing I'd like to see in a Peugeot, it would be the steering wheel from the Inception. If we could have that, it would be a gamechanger."

A retrospective approach

Perhaps combining the past with the future comes naturally to Christophe because his career with the French carmaker spans more than three decades.

He began his career in Citroen, before eventually moving to more senior positions in both Peugeot and Citroen. Both brands belonged to the PSA Group prior to its merger with FCA.

As a car lover, Christophe always wanted to work in the car industry. And being French, it had to be with a French carmaker, too. "I like cars, driving cars and touching cars. I like automobile design and I am excited by technology as well."

He adds, "That's why I like products with technologies that can be explained to customers. There are a lot of features engineered by brilliant experts. These are the reasons that drove me towards this industry."

This article was first published in sgCarMart.