It is an understatement to say that Citroën has gone through a difficult period in recent years, with sales falling by 1.5% by the end of 2023 for a market share of less than 3%. If the brand's sales rebound in the first half of 2024 with an increase of 13.8% for a market share of 3.2%, the energy transition could prove to be a great growth potential for the brand.
The European Union has set 2035 as the deadline for phasing out combustion engines and forcing manufacturers to offer 100% electric vehicles. If the latter seem to be marking time in 2024 with a market share of only 13.9%, the electrification of the car fleet is increasing month by month until it represents more than half of sales when counting car sales. hybrid (MHEV + PHEV) and electric. However, Citroën, which until this year offered only 100% electric versions of the C4 and plug-in hybrids for the C5 Aircross and C5X, was limited by a reduced electrification range. This limitation slowed down its growth as it did not cover the entire market, making it much more difficult to show sales growth.
Reasons to trust
This year, 2024, things are changing as Citroën has introduced the new hybrid engine across its entire range, from the new C3 to the large C5 X. Given that MHEV hybrids represent 29.9% of sales in Europe, offering a complete range of vehicles with this engine is certainly a way to meet customers' needs and therefore grow on the market, especially as this type of engine is set to grow in 2024 with a gain of 4 points of market share in Europe, which is considerable.
The other reason for hoping for a significant upturn in the brand's sales is the renewal of the Citroën C3 and C3 Aircross, both of which offer a hybrid and an electric engine, thus finally meeting the needs of all customers with a range of engines from pure thermal to 100% electric, covering 79% of the market compared to 35% for the older generations.
Similarly, by repositioning itself as a popular and accessible brand, Citroën has reduced the prices of its new C3 and C3 Aircross, which are up to 5,000 euros cheaper than previous generations in certain versions, with a more modern engine and more complete equipment. If we look at the success of Dacia, which has managed to make the Sandero the best-selling private car in Europe, Citroën's new positioning gives hope for a significant increase in sales, especially as the Chevrolet brand retains the advantage of a more varied range of engines and extreme comfort, which ensure a unique offer on the market at this price level.
It is enough to look at the recent fall in prices in Germany in October 2023, which allowed the brand's sales to increase by 64% in the first half of the year, to hope that with this price positioning throughout Europe, Citroën's sales could increase strongly, especially as it is one of the only brands to offer electric and hybrid versions at such affordable prices.
In conclusion, by finally offering a diverse range of engines, including thermal and electrified (MHEV, PHEV, electric), Citroën covers 80% of the European car market, compared to just under 50% in 2023. The brand therefore has every reason to believe that its sales could increase mechanically, and the figures for the first half of the year confirm this, with the brand recording the strongest growth of the Stellantis brands, overtaking Fiat and returning to the level of Opel. Inevitably, the arrival of the new C3 and C3 Aircross, much more accessible and equipped with electric engines, should also contribute to the brand's sales growth in Europe. Will this be enough to reach Thierry Koskas' target of 5% market share (VP+LCV) by 2025? Answer in the coming months.
Comments