Why is Citroën falling so much in France and Europe?
But where does the chevron mark go? According to the European Automobile Manufacturers Association (ACEA), Citroën has only 3.3% of the European market. Even 2.3% in December 2022 alone. The firm surpassed 4% in 2019, 5% in 2013, and 6% in 2010, the year before Covid. In France, Citroën painfully reached 8.5%. It was against 10.5% in 2015. In 2010, the company was close to 15%! Biggest humiliation: Citroen was beaten by Dacia last year… in Europe and also in France. Renault’s low-cost subsidiary now sells 100,000 more than Citroën on the Old Continent, and a thousand more in France. “They knocked us off the podium in France,” laments the brand’s Southwestern salesperson.
In addition, Jerome Gautier, Citroen’s commercial director for France, will leave his position in 1.er February. Even if the brand says there’s no connection, dealers see a clear cause-and-effect relationship. The same Jérôme Gautier admitted last November at a conference organized by agents (reported by the Journal de l’automobile) that the market share should naturally be between 10-11% in France. 2022 will be the worst year since 2001, when data compiler AAA Data published the numbers. Even worse: the small Citroën C3, which was released in 2016 and will be replaced at the end of the year, loses third place in the French market. model), in favor of Dacia Sandero, placed between Peugeot 208 and Renault Clio! According to the European Automobile Manufacturers Association (ACEA), the French manufacturer registered 375,578 new cars (-15.7%) in Europe last year, including 129,883 (-19.8%) in France after PFA (Platform Car).
The lack of attractiveness of the range
Reasons for this decline put forward by Citroen? “We suffered from a lack of cars due to the component crisis and logistical problems,” Citroen director Vincent Cobée said during tests of the C4X electric compact in Madrid last week. This is the official reason that all manufacturers throw out to justify the decrease in their volumes. Given the shortage of semiconductors and the resulting low production in factories, this is not a lie. In addition, the lack of truck drivers caused serious disruptions in the delivery of parts and the vehicles themselves. Ultimately, the component crisis led to group-level allocation choices that favored the most profitable models, and therefore not necessarily Citroëns. But the explanation, the cycle, is somewhat short. “We are sad, we are unhappy,” admits Nicolas Luttringer, Citroen’s new marketing director for France.
“Carlos Tavares wants more margins than volumes, but should we keep losing market share?” “We’ve been losing market share with individuals for the last four or five years,” asks the head of a distribution group in France bitterly. The reasons? Some product options failed. Thus, Stellantis abandoned the petrol and diesel versions of the Berlingo MPV, keeping only the more expensive and not very functional electric version. Hence the immediate collapse of sales (-70% in eight months). But, above all, “the brand has lost its appeal. The models have not been renewed fast enough,” a Citroën agent in the Paris area stressed, adding: “Stellantis claims we are an entry-level brand, but our prices are not right. The prices are too high, we are Opel or Peugeot we can’t sell it at that price”. Citroen’s first model really starts at 16,590 euros, 11,490 for Dacia, 11,740 for Hyundai, 12,790 for Kia, 15,100 for Opel. C-Ways analyst and co-founder Eric Champarnaud explains: ” Between Dacia and Citroën, the customer looking for a low price will go to the first one.”
Historically an elderly customer
Citroën also doesn’t have small electric cars like the Dacia Spring, Opel Corsa or Peugeot 208 zero-emissions. The C3 city car is expected, but will not be available for marketing next year before the end of the year. The brand also doesn’t have a 48-volt micro-hybrid in the catalog, for example, the non-rechargeable hybrids in the Renault Clio are in the spotlight. There is no LPG in the program, as is the case with superethanol cars such as the Dacia or Ford Fiesta or the small Ford Puma SUV. These fuels are half the cost of unleaded fuels. Another, more structural factor: “Citroën is a multi-generational brand with relatively old customers who update their cars less often. There is a real problem in attracting young people,” continues Eric Champarnaud. These relatively old customers belong to history as well as to the products themselves. In short, the old French firm, which was taken over by Peugeot in 1974, is looking for itself and its market shares are shrinking!
The European Automobile Manufacturers Association (ACEA) announced on Wednesday that the total European market (passenger cars) will fall to the level of 1993 in 2022, a dark year for the automotive industry. Despite a slight improvement in sales since August, the market fell 4.6% year-over-year to 9.3 million new cars.
