PSA Peugeot Citroën’s sales were stable in 2003 at 3,286,000 units, compared with 3,267,500 in 2002, and the group expects “a moderate increase in sales in 2004”, it said in a statement. PSA added it was partially withdrawing from UK market segments that had become “unprofitable” due to the strengthening of the euro against the pound.
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“The group demonstrated good resilience during the year in a challenging environment shaped by a sharp decline in demand in France and the euro’s appreciation against other currencies,” the statement added.
PSA ended 2003 with a 5.8% share of the world market.
Market share in Western Europe for passenger cars and light commercial vehicles stood at 15.4% compared with 15.5% in 2002 and 15% in 2001, and PSA remained Europe’s second-largest carmaker. Group registrations declined 2.1% to 2.46 million vehicles, on a par with the 1.6% decrease in the market as a whole.
Europe passenger car registrations reached 2,105,000 for a market share of 14.8%, compared with 15.1% in 2002.
But PSA widened its European light commercial vehicle market share by nearly one point to 20.0% with 354,000 registrations during the year.
The Peugeot 206, many of which are built in the group’s UK plant near Coventry, remained very popular in 2003, with unit sales down just 2% to 819,000 – it’s sold in markets as far from France as Australia, New Zealand and Japan and is also built in South America.
Helped by the introduction of a coupe-cabriolet version in September 2003, unit sales of the Peugeot 307 rose 3% to 560,000.
Citroën enjoyed a good first full year with its C3 compact hatchback line, launched in April 2002, which contributed strongly to the brand’s overall sales growth, selling 342,000 units in 2003.
Launched in the last quarter of 2003, the smaller, split-tailgate, three-door C2, which shares some parts including its dashboard with the C3, was said to have been “well received” though initial sales figures weren’t given. This new model is expected to help widen Citroen’s small car market share in 2004 as it replaces the long-serving Saxo.
Unit sales of the Citroën Berlingo and Peugeot Partner van lines were up 8% to 179,000 for the Berlingo and 14% to 135,000 for the Partner.
Peugeot 807 and Citroën C8 large MPV sales – PSA’s versions of a French-built model line also shared with Fiat and Lancia – more than doubled to 62,000 units.
PSA said widespread availability of its high-pressure direct injection (HDI) diesel engines across its model lines enabled it to respond to strong demand from European customers for diesel vehicles.
Western Europe
PSA Peugeot Citroën recorded 2.46 million passenger car and light commercial vehicle registrations in Western Europe in 2003, a decline of 2.1%, on a par with the 1.6% decrease in the market as a whole. Market share in the 17-country region held steady at 15.4%, compared with 15.5% in 2002, despite a sharp decline in French home market demand.
Nonetheless PSA claims market leadership in France, Spain, Belgium, Portugal, the Netherlands and Denmark and ranks second in Italy, Austria, Greece and Switzerland. Its market share exceeds 10% in 14 of the 17 Western European countries, the statement said.
In France, passenger car and light commercial vehicle registrations totalled 793,656, for a market share of 33.2%. Overall, group registrations were down 8.2% compared with 6.2% for the market as a whole. Citroën’s share widened to 14.3% from 14% the year before, while Peugeot’s edged back from 19.9% to 18.9%.
In Spain, the group maintained its leadership position in passenger cars and light commercial vehicles with a market share of 22.4%. Citroën, which ranks second in passenger cars and first in light commercial vehicles, recorded 200,000 registrations, an increase of 5.3% in a market up 4.9%. Peugeot gained 2.6% with 176,000 registrations during the year.
In the United Kingdom, where market share came to 11.9%, the group was adversely affected by the euro’s appreciation against the pound though it did not provide details.
The statement said the UK is the group’s third-largest market in volume and, “in response to the decreasing profitability of its UK marketing operations, PSA Peugeot Citroën has decided to partially withdraw from the least-profitable market segments.” UK sales declined 9.1% in 2003.
In Germany, unit sales continued to rise, to 201,000 units. Registrations grew 7.9% while the overall passenger car and light commercial vehicle market declined by 0.7%, making for a market share of 5.9% compared with 5.4% in 2002.
In Italy, where overall demand declined by 4.9%, PSA significantly increased its market share for the second year in a row. With registrations up 7.7% to 264,000, the group’s share widened by 1.3 points to 10.9%, in particular reflecting a 36.6% gain at Citroën, mainly led by the popularity of the C3.
Outside Western Europe
Outside Western Europe, unit sales rose 15.2% to 818,000 – 562,000 Peugeots and 256,000 Citroëns. This represented 24.9% of total group sales, compared with 21.7% in 2002 and 18.8% in 2001.
In Latin America, unit sales decreased 2% to 107,000 in a still difficult economic environment. Brazilian registrations declined 13% in a market down 8%, for a market share of 4.3% compared with 4.5% the year before.
In Central and Eastern Europe, unit sales rose 28% to 216,000. In the six main Central European countries (Poland, Hungary, Czech Republic, Slovenia, Croatia and Slovakia) plus Turkey, unit sales increased 27% to 169,000. The group has enjoyed sustained growth in market share, from 5.1% in 1997 to 12.7% in 2003.
In China, the group sold 104,000 Citroëns, an increase of 22%. Sales have practically doubled in the past two years. In partnership with Dongfeng motors, the group announced on Tuesday that production capacity at Dongfeng Peugeot Citroën Automobiles (DPCA) will be lifted to 300,000 vehicles per year as from the second half of 2006. DPCA expects to see strong production and sales growth as it pursues an ambitious product plan and introduces the Peugeot marque in 2004.
In Iran, CKD sales rose 43% to 199,000 units in 2003 from 156,000 in 2002, of which 192,000 were Peugeot models, including the 206 and various 405 derivatives still made in that market.
Outlook for 2004
PSA says new model launches will begin to produce an impact in the second half of the year – its new Peugeot 407, replacing the eight-year-old 406 line, is the major 2004 model debut. As a result, early 2004 sales are expected to remain on the same trend as in the last six months of 2003. The 407, in particular, is expected to help the group return to faster growth.
