A drop in demand and sale of its vehicles in China, the Middle East and Africa were blamed by the French carmaker PSA Group for a 10 per cent fall in its sale for 2019, the company announced on Thursday. It said that it had sold 3.49 million units in last year compared to sale of 3.88 million vehicles in 2018 which was also a record year of sales for the company.
During last year, there was a 2.5 per cent drop in the sale of the Paris-based PSA’s vehicles in its European home market with total sale in the region falling to 3.11 million vehicles. The least in demand was the company’s Opel-Vauxhall brand which saw a drop of 6.4 per cent in sale during the period.
It “maintained its position by achieving a 16.8 per cent market share in a market that was up a slight 1.3 per cent” the company said in a statement with reference to Europe and added that this was driven by an increase in sales of light commercial vehicles (LCVs). The market share of the company in the region has seen a jump of 3.8 points in 2018 year on year to touch 17.1 per cent.
In the European passenger car market, the performance of PSA was eclipsed by the performance of Volkswagen Group and Renault, according to figures published by the European Automobile Manufacturers Association.
On the other hand, there was a 73 per cent drop in the sale of its passenger cars sales in Europe for Fiat Chrysler Automobiles.
Last month, PSA and FCA had announced that the two companies had agreed to a binding merger in a deal worth $50 billion and the ultimate merger of the two companies would result in the creation of the fourth largest car maker of the world.
“2019 was a year of consolidation for Peugeot. The brand completely renewed its B-segment offering to support its sales growth in 2020,” PSA said in its statement, referring to its small passenger car line-up. The company added that “Citroen had the strongest growth among the top 12 best-selling brands in Europe”.
The only brand of PSA to register an increase in sale globally in 2018 was its DS brand. It noted an increase of 17.4 per cent as the company sold 62,512 units of the brand worldwide. There was a drop of 16.3 per cent in the sale of its Peugeot brand last year while its Citroen brand also saw a fall of 5.1 per cent and its Opel Vauxhall noted a drop of 5.9 per cent in sale in the same period.
There was a very large – 55.4 per cent, drop in the sale of company’s cars in China to clock sale of just 117,084 vehicles. That number was just one tenth of the sale target of one million cars for the Chinese market that the company had set for itself some years ago.
There was a large – 22.5 per cent, drop in sale of the company in its Latin American market while a larger still – 43.7 per cent, drop was reported by the company in the Middle East-Africa region.
(Adapted from Reuters.com)