In a bizarre twist of events, Citroen, the famous French car maker, is going to leave the Australian market after over a century. Today’s announcement by its local importer Inchcape Australia marks a conclusion for the innovatively designed and engineered brand over the years.
The exit of Citroen from Australia will take place gradually over several months, with existing customers receiving support and service from the company. This decision comes as Inchcape Australia shifts its focus to Peugeot which has had a more impressive sales growth and market opportunities recently.
Since her arrival into Australia in 1921, Citroen has been known for pioneering automotive design. Citroen has always been associated with innovation, comfort, and that distinct French touch right from the days of the legendary 2CV to today’s modern C5 Aircross car model. However despite this reality, the brand has struggled to hold significant sway in Australia’s intensely competitive auto market.
When it comes to sales, Citroen’s figures have been relatively low as it was able to sell only about 400 units throughout 2023.
Some reasons why sales went down include increased competition from Japanese or South Korean producers, the decreasing interest in buying sedans/hatchbacks as well as the absence of new cars attractive enough for Australians.
Focus Shifts to Peugeot According to Inchcape Australia’s announcement, they are going to withdraw Citroën from the market so that they can put more effort into Peugeot which also belongs to Stellantis Group. In Australia, Peugeot has bounced back especially with recently unveiled models like 3008 and 2008 SUVs that have become favorites among Australian buyers. “In order to redirect our resources towards the needs of the local market and direct them towards the growing success of Peugeot, we made a hard choice not to sell Citroën in Australia anymore”, said Inchcape Australia’s MD. “But even though we stop selling it we will continue supporting Citroen customers like providing them with parts or service for many more upcoming years.”
In a statement to Cars Guide, Citroën has confirmed that it will continue to support its owners in Australia through the existing dealer network which will soon become Peugeot-only. Inchcape Australia assured that all warranties, servicing and parts availability, are to remain unchanged despite this move by the brand.
This move reflects wider trends occurring in the automobile industry with manufacturers increasingly moving towards more profitable territories while consolidating under bigger companies for better streamlining of proceedings and improvements in productivity.
Global consequences
Citroën’s withdrawal from Australia is an aspect of a much broader modification plan from Stellantis, a global automobile corporation that emerged from the merger between PSA Group and Fiat Chrysler Automobiles. The group has been reviewing how these betrayers perform across multiple countries and making modifications so they can survive for many years ahead.
For Citroën, leaving Australia can serve as a chance for refocussing its concentration on areas it considers are mainly Europe and other developing regions that still offer some potential for further advancement on its brand name.
As Citroën prepares to leave the Australian market, it is leaving behind a legacy of innovative spirit and unique car design that has appealed to some enthusiasts. The focus will now be shifted towards Peugeot; a sign of changing times in Australia’s auto industry where companies have to change with customers’ needs and preferences.
For those who have loved Citroën over all these years in this country, it is sad but auspicious when the brand will no longer exist. In any case, Peugeot’s future in Australia starts here with one of its own.
