·The sales of French cars in China have not yet recovered. PSA two joint venture car companies have lost more than half of their sales in half a year.
According to the sales data released by Peugeot Citroen Group (PSA) recently, the Group's global sales in the first half of 2017 was 1,579,900 units, an increase of 2.31% over the same period last year. However, in the Chinese market, sales of French cars continue to decline, and PSA's luxury brand DS is increasingly marginalized in China. At the beginning of this year, PSA was still more optimistic about the market performance in China in 2017, and set a target of 5% sales growth, but the reality is not optimistic. Sales of PSA's two major joint ventures in China, namely Shenlong Automobile (including Dongfeng Citroen and Dongfeng Peugeot) and Changan Peugeot Citroen (hereinafter referred to as Changan PSA), both experienced significant declines. According to the sales data of Shenlong vehicles on July 19, Dongfeng Citroen delivered 124,100 new cars in China from January to June this year, down 63.2% year-on-year. In June alone, Citroen sold 6280 new cars, compared with last year. In the same period, 20,000 vehicles fell 68.9%. Dongfeng Peugeot also fell, with a cumulative sales volume of 161,400 units in the first half, down 36.7% year-on-year. According to the sales volume of Dongfeng Citroen and Dongfeng Peugeot, Shenlong Automobile sold 285,500 units in the first six months of this year, down 48.2% year-on-year, a drop of nearly half. Another joint venture, Changan PSA, is even worse. The sales volume of Changan PSA brand DS in the first half of this year was only 3,133 units, down 64.1% year-on-year compared with 8715 units in the same period last year. The new model DS6 sold only 300 vehicles a month, with a cumulative sales of 1,864 vehicles in the previous June, down 66.4% compared with 5,543 vehicles last year. On the whole, PSA's two major joint ventures in China fell more than half in the first half of this year. It is reported that in order to boost sales, this year PSA has taken a series of measures and hopes to change its business model in China. On June 7, PSA and Changan Automobile (000625, shares it) also signed an agreement to strengthen cooperation, and is committed to accelerating the development of the DS brand in China. Despite the continued decline in sales in the Chinese market, the strength of the Peugeot brand in the global market may allow the PSA to take a breather. In the first half of this year, the global sales performance of the three major brands of the PSA Group showed significant differences. Among them, DS brand sales in the first half of the year was 27,800 units, a drop of 46.31%; Citroen's global sales in the first half of this year was 526,700 units, down 12.35% from 60,100 units in the same period last year; Peugeot is the only one among the three major brands to achieve sales growth. The brand has climbed from 891,300 units in the same period last year to 1,205,300 units, and sales have increased by 15%.
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