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Peugeot Sales in 2014 Up 32% in China, Replacing France As Their Biggest Market

Europe's second largest carmaker by volume, PSA Peugeot-Citroen has just reported a 4.3% increase in total sales for 2014, up from 2.82 million to 2.94. This was partially helped by demand for new models, but also by a change in clientele.
Peugeot 308 1 photo
Photo: Peugeot
Group sales were almost evenly split between the 6% rise of the Peugeot brand and the 7% increase registered by Citroen. The company is still almost 20% below the numbers it achieve in 2010 and the market focus has shifted.

France is no longer the biggest market for PSA. During 2014, 734,000 vehicles were sold in China, an increase of 31.9%. This is now their largest single market, as demand in France only reached 638,000 units. On the other hand, PSA witnessed a substantial 34% decrease in Latin America to 200,000 cars, as the Argentinian and Brazilian markets entered a recession. Russia was also a black hole for them (-41%).

A focus shift

PSA last year announced it was going to turn DS into a third, separate brand. However, we have a feeling it's not for the sake of Europeans. Many bespoke premium models, including the DS 5LS sedan and DS 6WR SUV, have been created exclusively for the Chinese market.

PSA and Dongfeng have announced a target of 1.5 million cars in China by 2020, all locally produced. That's twice what they made last year and about half their current global total.

China could be the key to fixing their bottom line. PSA has been bleeding money for a very long time, having announced a major 2.32 billion euro loss in 2013. Profit numbers for last year were not announced, nor will they be, since Peugeot said no positive cash flow can be expected until 2016 or later.

Perhaps more important than the fact that Chinese customers want to buy international brands is the fact that Peugeot is firmly shaking up its image as Europe's loser. The new 308 compact was voted as Car of the Year and subsequently registered huge demand, as did the Citroen C4 Cactus.

Volkswagen Group is still the biggest carmaker in Europe, possibly even the world. On Monday, they announced sales of 10.15 million cars, placing them ahead of GM and likely even Toyota.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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