PSA presents record results for both sales and financing. But not everything is rosy. In the record of records, it has been said several times, the group is very dependent on Europe.
However, it is present in important regions of the globe, starting with China, the largest market in the world. But PSA is fighting in the Middle Kingdom … and that's a euphemism. The situation turns into disaster! In the "China / Southeast Asia" region, sales fell 32% in 2018. The drop was particularly strong for Peugeot, with – 42%. And this has been happening for years, with a 37% drop the previous year.
Unfortunately, the descent into hell continues because the PSA records in this region have fallen again. It really is the collapse, with – 60% in the first quarter of 2019, 36,000 deliveries. An incomprehensible situation after the launch of new products, such as the Citroën C5 Aircross and the DS7 Crossback. If this poor rate is maintained, the 100,000-register barrier will be poorly exceeded.
As early as 2017, Carlos Tavares sounded the alarm, speaking of an unacceptable situation. We imagine this should boil because the group is now very, very far from their goals. It reached one million units by 2018, a goal that was reasonable a few years ago because PSA sold more than 700,000 cars in this region in 2014.
Among the reasons cited, Carlos Tavares points to the slowness of the decision with his local ally Dongfeng, who would have penalized the strategies of the French brands. Local experts also highlight the high prices of PSA models compared to local competition.
But Carlos Tavares maintains hope. In Geneva, he said: "We are capable of doing this, we are very persistent people and we never give up". Your group has a good base to revive, with production capacity and commercial network. He should become majority in his partnership with Dongfeng to have more freedom.