Citroen has rolled out its DS3 subcompact in Brazil as part of PSA/Peugeot-Citroen's aim to cut the carmaker’s reliance on the sluggish European market. Citroen’s latest move is part of PSA’s plan to sell half its vehicles outside Europe by 2015. The carmaker currently sells only 35 percent of its models outside the continent.
Ian Fletcher, an analyst for IHS Global Insight, remarked that the introduction of the Citroen DS3 in Brazil will allow the carmaker to gain higher margins as well as increase its chunk of the South American market. He added that the DS line could be the best way for PSA to raise its profile in Brazil and South America as it complements its lower-cost Citroen and Peugeot models.
Initially, Citroen plans to export the DS cars from France to Brazil, but the carmaker will eventually build the DS in South America, a company spokesman told Automotive News Europe. PSA currently operates a factory in Brazil in Porto Real. The plant, which could produce up to 160,000 units a year, currently builds the Peugeot 207 and the Citroën C3 and Xsara Picasso.
Citroen posted a 7 percent increase in car and light commercial sales in Brazil to 90,032 units in 2011, giving the brand a 2.6 percent market share. PSA/Peugeot-Citroen disclosed today that the sales of its DS line account for around 15 percent of orders in Europe in the first half and 10 percent of Citroen’s global sales.