Citroen and Peugeot maker PSA Group booked first quarter 2017 revenue of EUR13,629m, of which EUR9,018m was raised by the automotive division and EUR5,092m by supplier Faurecia.

Group revenue rose 4.9% year on year. PSA said automotive division revenue grew 2.5% as product mix improved (+3.7%), linked to the success of recently launched models, which "more than compensated [for] the negative impact of exchange rates (-1.0%).

At the end of March 2017, inventories were slightly up at 390,000 vehicles.

PSA CFO Jean-Baptiste de Chatillon said: "The success of our profitable organic growth plan Push to Pass is confirmed by our recent launches and the acceleration of our international development. Despite an ever volatile and uncertain economic environment, our agility is more than ever a competitive advantage for achieving our growth and profitability objectives."

Market outlook

In 2017, the group expects the automotive market to grow by approximately 1% in Europe and 2% in Latin America. The market should also grow by 5% in China and remain stable in Russia.

Push to Pass objectives are to deliver over 4.5% automotive recurring operating margin on average in 2016-2018, and target over 6% by 2021; deliver 10% group revenue growth by 2018 vs 2015, and target additional 15% by 2021.