PSA/Peugeot-Citroen is now introducing new models in China’s luxury car market as the French carmaker aims to further increase is sales figure in the country. PSA aims to almost double its sales of lower-range cars in China by 2015, during which it expects Chinese sales to account for around 15 percent of its global figure.
PSA’s luxury car sales in China accounted for around 11 percent of its global figure in 2011. The Chinese luxury car market is currently dominated by Volkswagen's Audi, BMW and Daimler's Mercedes-Benz and is being viewed by global carmakers as an important market particularly as the current economic situation in the West, particularly in Europe, has been negatively affecting vehicle sales. PSA is now introducing its upscale Citroen DS3, DS4 and DS5 models in China in order to take a chunk of the luxury car market in the country.
In an interview with Reuters, PSA’s head of Asian operations Gregoire Olivier said that the luxury car market now accounts for 8 percent of the Chinese market, which translates to one million customers this year. Olivier remarked that the premier car market will account for over 15 percent of the Chinese market by 2020.
Olivier said that the company is targeting the new generation of premier car buyers through its Citroen DS model range. PSA expects the model range to compete against Volvo, rather than versus Volkswagen's Passat or the Buick Lacrosse at the top end of the regular car market. PSA prices the Citroen DS5 CNY300,000 to CNY350,000 ($47,000 - $55,000) and the Citroen DS4 at up to CNY300,000 – almost the same price as its Volvo counterparts. Peugeot has started opening dedicated outlets for the Citroen DS in China, and aims to open 100 of them by 2015.