French concern PSA Peugeot-Citroen increased global sales last year by 4% due to a 32% growth in China. Experts believe that this could be a sign that the Chinese market expects greater success of mass manufacturers, and sales of premium brands slow.
During the 12 months of last year PSA sold as a whole 2.94 million vehicles, of which China has sold 734,000. Thus, China has become the largest market for the French, and the increase in demand, including, contributed to the expansion of the dealer network of 100 showrooms. The total share of PSA in the Chinese market is now estimated at 4.4%, whereas before was 3.6%.
Overall, however, the Chinese market has slowed its growth, and automakers need to revise its strategy. In particular, the premium brands can sue, it is better to leave at the peak of success. For example, BMW last year “grown” in China 17% to 455,979 (including Mini) vehicles. This week, the Bavarians said they expect growth in 2015 less than 10%. Moreover, dealers in China already unhappy too high prices for goods, when most people go shopping more affordable cars.
The Chinese market is very important for the German premium automakers, according to estimates, it accounts for about half of the total earnings of DM. However, in this situation, Volkswagen with its massive car may be in a better position than the BMW. PSA in 2014 in China earned 500 million euros.