Peugeot breaks sales trend, sees increase in sales

Automotive Industries, Jan, 2003

Last year was disappointing for most global automakers, which saw sales drop in many markets around the world.

Not for PSA Peugeot Citroen which resisted the trend and saw sales increase 4.3 percent during 2002.

By the end of the year, PSA sold 3.27 million vehicles globally. Sales were up from 3.13 million in 2001 and higher than the 3.25 million it expected to sell.

Now the company is forecasting further growth in 2003. Even though the company expects the European market to remain stagnant or drop slightly, it will again buck the trend and see at least a 2.5 percent increase over 2002. That translates into sales of at least 3.35 million vehicles.

Much of PSA's growth was due to increased sales at its edgy Citroen unit, which saw sales jump 6.4 percent. The increase was fueled by the launch of the new compact 03 and a 9 percent increase in Xsara Picasso sales -- a multipurpose vehicle (MPV).

Peugeot brand sales increased 2.9 percent to 1.96 million units thanks to strong sales of both the 206 and 307 and diesel versions of its vehicles.

By the end of the year, PSA saw its market share increase from 15 percent to 15.5 percent -- a large jump in the very competitive European market.

PSA's main rival, Renault SA, did not fare as well during 2002. The traditionally sales-strong company saw sales fall from 2.413 million units in 2001 to 2.405 million units in 2002.

Even with several new products on the market, Renault expects similar results for this year.

Other global sales results:

Poland sales were the lowest since 1995, even with strong sales toward the end of the year. Some 308,000 units were sold during the year with 24,481 sold during December -- an increase of 27 percent.

While sales started off extremely weak, a strong economy and lower interest rates pushed sales up toward the end of the year. By December, Poland had seen six consecutive months of sales increases.

Experts expect the strong sales will continue into 2003 and end up about 5 to 7 percent above 2002 levels.

Fiat continues to lead the market with 18.3 percent market share. But the Italian automaker's sales were down almost 30 percent in the market.

In the Czech Republic, sales were down 2.9 percent to 147,754 units. But, like Poland, the country saw a recovery in the second part of the year.

Economic growth, which slowed in the first part of the year, picked up by October. Volkswagen's Skoda continues to dominant the market with a 50 percent market share.

Even though Singapore is suffering its worst recession in more than 30 years, luxury car sales soared during 2002. Sales of Jaguar vehicles are up 27 percent to 345 units compared to 2001 while Rolls Royce sales doubled from one car to two. Lamborghini sales are also up from two units to six. A Lamborghini costs more than $600,000 in Singapore.

In South Korea, imported sales more than doubled topping 16,119 units during 2002 -- the most imported cars sold in a year since 1987 when imports were first allowed into the country, according to the Korea Automotive Importers and Distributors Association. A cut in consumption taxes spurred the increase along with an onslaught of new models.

Consumption taxes were cut in August from 7 to 14 percent to 5 to 10 percent based on a vehicle's engine size.

The tax cut was most beneficial to luxury car buyers who flocked to BMW and Lexus showrooms making the companies the two largest import retailers in South Korea.

Vehicles with engines 2.0 L to 3.0 L were the most popular. European foreign cars held 63 percent of the import market while U.S. and Japanese automakers held 18 percent each.

In New Zealand, a strong economy and an increase in income helped new car sales increase 12 percent during the year. The results are the best the country has seen in more than 10 years, according to the Motor Industry Association.

New vehicle sales totaled 83,743 units with Toyota selling the most vehicles, followed by GM's Holden unit and Ford.

Passenger car sales increased 10 percent to 64,086 units while commercial vehicle sales jumped 19 percent to 19,657 units.

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