PARIS -- PSA Group reported a rise in third-quarter revenue on strong demand for its pricier SUV models, but the automaker said overall vehicle sales fell, and it lowered outlook for major auto markets.
Revenue for the July to September period rose 1 percent to 15.6 billion euros ($17.35 billion), PSA said in a statement on Wednesday.
Sales of larger and more profitable SUV models such as the the Peugeot 508 and Citroen C5 Aircross helped to improve its product mix and offset headwinds including unfavorable currency swings, the company said.
Global vehicle unit sales fell 4 percent to 674,500, hurt in part by weakening performance in Europe.
PSA said it expected the broader auto market to shrink this year in all major markets, including in Russia, where it had previously projected growth.
PSA has managed to avoid the worst of the slowdown gripping the industry by introducing revamped models and riding the wave of demand for SUVs.
It has also stuck to what Chief Financial Officer Philippe de Rovira has called a "strict" pricing policy, with fewer discounts, helping PSA lift revenue even as unit sales decline.
"In Europe, the momentum of the group is strong -- we have gained market share," de Rovira told analysts on a conference call Wednesday. Still, "PSA is continuing to face challenges in emerging markets, especially in China."
PSA's vehicle sales in Europe have been flat through the first nine months, compared with drops at rivals Renault and Volkswagen, according to data from the ACEA industry association. Overall, the European market has declined by 1.6 percent.
More than three-quarters of PSA’s sales are generated in Europe, a reliance that became more acute since it acquired the Opel and Vauxhall brands from General Motors.
