Customer Logins
Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Customer LoginsGroupe PSA records positive sales performance in July on strong Latin America, Middle East-Africa results
Groupe PSA has announced that its global sales performance increased by 10.4% y/y during July as the automaker recorded significant increases in Latin America and the Middle East.
IHS Automotive Perspective
- Significance: PSA has announced that its global sales grew 10.4% y/y during July, taking registrations in the YTD back into positive growth territory..
- Implications: The improvement has been underpinned by the inclusion of CKDs to Iran in the data.
- Outlook: In the near term, without this unusual CKD activity included, IHS Automotive currently anticipates that light-vehicle global registrations will stand at 2.88 million units during 2016, a decline of 1.7% y/y.
Groupe PSA has announced that it recorded a positive sales performance during July. According to data released for the month by the OEM, the number of fully assembled light vehicles and those as completely knocked down (CKD) kits has increased by 10.4% y/y to 219,500 units. This has helped to pull its performance in the first seven months of the year up into positive territory again, with a gain of 1.0% y/y, now standing at 1,763,700 units.
On a brand by brand basis, sales of its main brands recorded differing performances. The larger Peugeot brand increased by a significant 23.4% y/y to 141,100 units while Citroën contracted by 5.4% y/y to 73,400 units and the DS Automobiles brand plummeted by 28.0% y/y to 5,100 units.
Despite the gains recorded, many of its regions declined this month. This included a far weaker performance in Europe. In the area comprising the European Union (EU), European Free Trade Area (EFTA), Albania, Bosnia and Herzegovina, Croatia, Kosovo, the Former Yugoslav Republic (FYR) Macedonia, Montenegro, and Serbia, sales have slid by 8.5% y/y to 122,800 units. All three brands recorded some degree of contraction, although Peugeot's was the smallest of these with a fall of 6.8% y/y to 69,600 units. Nevertheless, it remains up in this region during the year to date (YTD) by 5.4% y/y to 1,178,600 units.
Another market where a fall has been recorded is China-South East Asia. This is the latest month of falls for the French automaker, although in July the rate of decline has eased to 10.1% y/y to 35,200 units. It has been partly helped by the Citroën brand which has improved by a marginal 1.3% y/y to 14,300 units. Nevertheless, the important Peugeot brand is still down by 13.1% y/y to 20,300 units while DS Automobiles has tumbled by 62.7% y/y to 600 units. This, along with earlier declines, has resulted in a fall in the YTD of 18.5% y/y to 331,700 units.
The Eurasia market, which focuses on Russia and Turkey, has not helped either. Its sales here have contracted by 29.2% y/y to 800 units. However, the rate of decline is less significant in the YTD as it has fallen by 5.1% y/y to 5,900 units.
However, the declines in these regions were easily offset by gains elsewhere. One of the most significant improvements this month has been the 236.9% y/y surge in its Middle East-Africa market as sales hit 46,200 units. Driving this gain has been the 338.7% y/y leap by Peugeot to 41,400 units, as it other brands recorded more modest improvements. The gain this month has helped PSA record an increase in the YTD of 16.6% y/y to 133,600 units.
Latin America was another important improver as it contrasted with the general trend, particularly in its largest market Brazil. PSA's sales are up 38.1% y/y in the region to 13,200 units, as the Peugeot brand jumped 57.4% y/y to 8,700 units. The OEM's YTD is now well into positive territory, with a gain of 18.8% y/y to 102,000 units.
Furthermore, PSA's sales are also up in its India-Pacific region this month, from 1,200 units to 1,400 units. However, in the YTD they remain down by 16.6% y/y at 11,900 units.
Outlook and implications
It has been a mixed month for French OEM, but at least the figures tell a positive story. The most notable increase is related to the Middle East-Africa region, which has had a particularly strong month. However, there appear to be certain factors at play here. Indeed, PSA has noted in the data this month that the consolidated data include both assembled vehicles and CKDs as opposed to solely assembled vehicles in the results for May that it published. This indicates that the automaker is now including shipments of CKD kits to the Iranian market after it finally reached an agreement with Iran Khodro Corporation (IKCO). This situation is likely to inflate PSA's global sales data over the coming months as well. Even so, the automaker is committing itself heavily to the market, having not only signed up to a joint venture (JV) with IKCO to support the Peugeot brand, but also one with Saipa to drive growth of the Citroën brand.
In Latin America, it has also managed to avoid been caught up in the drag of the Brazilian market, which has suffered another poor month during July as its light vehicle registrations fell by one-fifth. PSA has recently been taking advantage of the Argentine market rising from a low ebb, although this does not necessary take into account the scale of the gains seen elsewhere in the region.
The company continues to see declines in the China-Southeast Asia market, in which it heavily relies on China. The substantial falls in the first half of the year have been caused to some degree by a dearth of new models of late. However, there is some hope that this will be rectified by launches that took place at the Beijing Motor Show (China) in April. This includes DS Automobiles' DS 4S, Citroën C4 L and C6 sedans, as well as the updated Peugeot 3008 and new 308 sedan. The gain this month by Citroën could be a glimmer of positivity, although it could also be being helped by a lower base of comparison as well. Nevertheless, PSA will persist with plans to reveal five sport utility vehicles (SUVs) in the next two years while Peugeot aims to launch 18 new models by 2020.Its performance in Europe is being hit by a combination of factors this month. Certainly PSA and many of its rivals are being hit partly by the two fewer working days in July. Furthermore, PSA is awaiting the introduction of new models to customers such as the third-generation B-segment Citroën C3 and second-generation Peugeot 3008. This will be followed by a string of other introductions, including mid-life updates of its current range, which will spur its brands forwards from 2017.
In the near term, without this unusual CKD activity included, IHS Automotive currently anticipates that light-vehicle global registrations will stand at 2.88 million units during 2016, a decline of 1.7% y/y. However, it will start to recover during 2017 before reaching around 3.36 million units by the end of the decade.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.