PSA/Peugeot-Citroen posted a 6-percent surge in global sales in the first half of 2014 to 1.54 million vehicles, boosted by an ongoing recovery in the European market and a current expansion in China. PSA said in a statement that it posted a 28-percent jump in sales in China, where it is currently expanding production in separate joint ventures with Changan Automobile Group and shareholder Dongfeng Motor Group.
It also managed to gain market share in Europe, thanks to an onslaught of new models and recovering demand in France, Spain and the United Kingdom. Sales in the region grew 12 percent to 956,000 cars and trucks, almost doubling the market's gains.
However, the French carmaker saw sales in almost every other major market drop significantly, blaming weakening emerging-market currencies for its fate. Peugeot CEO Maxime Picat particularly blamed the “devastating” ruble-euro exchange rate.
He added that political tensions and slowing economies created "sharply deteriorated situations" in many emerging markets. According to PSA deliveries dropped 27 percent in Latin America, 26 percent in Russia and 37 percent in Africa and the Middle East.
Weaker currencies are hurting the carmaker’s competitiveness overseas since it purchases a smaller share of components locally than its rivals like Renault in Russia.
PSA CEO Carlos Tavares has vowed to hike local sourcing in Russia to 50 percent of parts by 2018 from just 30 percent in 2013. Tavares has also vowed to achieve the same in Latin America.