Citroën, which has been present in Australia for more than a century, will cease new car sales in the market on 1 November 2024. This decision, announced by local distributor Inchcape Australia, marks a significant turning point in Australian automotive history, particularly for a brand that has introduced iconic models since 1923.
This long adventure therefore ends on a sobering note, with sales of the brand's latest models failing to seduce a market in constant evolution. Citroën has not been able to reverse the trend despite several attempts to relaunch its range, including the launch of the C4 and C5 X, but the engines offered did not suit Australian consumers, especially as the distributor did not introduce the electric versions that could have differentiated them; only the C5 X plug-in hybrid was launched a few weeks ago, but without a presence in dealerships, a sign of under-investment in the brand.
This announcement suggests that Citroën's distribution network in Australia could no longer support the low sales volumes, a situation exacerbated by the merger of the Citroën and Peugeot distribution networks under the Stellantis banner. This merger, designed with a multi-brand approach to optimise costs and resources, resulted in the prioritisation of Peugeot models, notably the sacrifice of the Berlingo in favour of its counterpart, the Peugeot Partner, despite the Berlingo being Citroën's best-selling model. This strategic decision further weakened the brand's presence in a market where its commercial vehicles had historically found their audience.
An Australian market moving away from Citroën's values
Citroën's decision to withdraw from the Australian market highlights the growing incompatibility between the brand's current strategy and the expectations of Australian consumers. While Citroën has refocused its positioning on accessible and popular vehicles, the Australian market seems to be moving towards more prestigious or specialised brands, as evidenced by sales figures for niche and luxury brands. In 2023, Citroën sold only 228 vehicles in Australia, a figure lower than brands such as Ferrari or Bentley.
However, Citroën had reached its peak in 2007 with 3,803 units delivered, but since then sales have continued to decline, reaching only 175 units in 2021 and a meagre 87 units in the first half of 2024, down 35.6% on the previous year. This low level of sales contributed to the decision to withdraw the brand from the Australian market. In comparison, Peugeot managed to maintain a sufficient level of sales with 2,516 units sold in 2023, almost as much as Citroën's total sales over a five-year period.
Citroën's withdrawal from the Australian market can be interpreted as the result of a global strategy that no longer corresponds to local specificities. In a market where consumers prefer high-end or specialist vehicles, Citroën's positioning as an accessible brand no longer fits. In conclusion, this departure highlights the need for car manufacturers to adapt their offer to the cultural and economic specificities of the markets in which they wish to succeed.
Comments