Worldwide sales of PSA Peugeot Citroën assembled and CKD vehicles in the first half of 2007 remained stable at 1,764,000 units – 1m Peugeots and 764,000 Citroëns.

Sales of assembled vehicles rose 1.7%, with a 7% rise in international markets, enabling the group to widen its market share by 0.2 points, but sales of CKD units for foreign assembly fell 23%.

The uptick in Europe was driven by strong demand for the Peugeot 207 and the Citroën C4 Picasso and Grand C4 Picasso, all relatively new models.

“The first-half business environment was shaped by a slight 0.8% decline in the European market, an increase in the euro against the yen and aggressive competition,” PSA noted.

In that European car and light commercial vehicle market, PSA registrations inched up 0.9% to 1,277,000 units, 675,000 Peugeots and 601,000 Citroëns. The Group’s European market share increased to 14.2% (7.5% for Peugeot and 6.7% for Citroën), compared with 14.0% in H1 2006 and 13.7% in H2 2006.

In France, where the market declined 1.9%, the group’s share improved to 31.6% (from 31.1% a year ago) with 417,000 registrations.

In Spain, the group was again the market’s leading automobile manufacturer with a share of 20.3%. In a market down by 1.3%, registrations rose by 2.5% to 202,000 units, driving a 0.7-point market share gain.

In Italy, the group increased share to 10.3% from 9.6% in a market that continued to expand, by 4.8% during the period. Registrations rose by 12.1% to 157,000.

In a UK market up 2.1%, group registrations rose by 2.7% to 152,000 units, for a 0.1-point improvement in market share to 10.5%.

In Germany, a market that fell 8.1% following an increase in the VAT rate, registrations were down 11.2% to 94,000 units.

Outside Western Europe, sales were stable compared with H1 2006. 530,000 cars and CKD units were sold, 357,000 Peugeots and 173,000 Citroens, representing 30% of group sales.

Excluding CKD units, sales in international markets rose 7%, led by faster expansion in the group’s priority growth regions.

In Latin America, where the market is experiencing robust growth, sales climbed 12% to 117,000 units. In Brazil, registrations rose by 22% to 55,000 units, for a 5.3% market share, while in Argentina, sales rose by 26% and market share improved by 0.5 points to 15.2%.

In the fast-growing Chinese market, demand rose 26.3% during the half but strong price competition since March saw the local unit protect margins so sales rose only 2% to 103,000 units.

“New model launches and an aggressive development of the network will sustain sales growth,” PSA China’s unit said.

In eastern Europe, where markets continued to expand, sales climbed 18% to 105,000 units. In the six main countries of central Europe (Poland, Hungary, the Czech Republic, Slovenia, Croatia and Slovakia), unit sales increased 15.7% to 59,000 in a market up 8.2%, lifting the group’s share to 12.1%.

In western Europe, the Group expects to see continued improvement in H2 2007, led by demand for the Peugeot 207 hatchback and CC, the C4 Picasso and Grand C4 Picasso and by the forthcoming launch of the Peugeot 4007, 308 and 207 SW and the Mitsubishi-supplied Citroën C Crosser.

Outside western Europe, where the market environment is expected to remain generally favourable, model line expansion will fuel sales growth, PSA said.