PARIS -- PSA Group's 2018 vehicle sales increased by 6.8 percent to a record 3.88 million, as a slump in China and other regional markets was offset by the integration of Opel sales and a strong performance in Europe.
Unlike other automakers, PSA suffered little disruption from the EU’s new WLTP certification process that came into effect on Sept. 1.
PSA's Europe chief Maxime Picat said the company's ability to meet the deadline for certifying all models and variants under the Worldwide harmonized Light vehicle Test Procedure, or WLTP, gave it an advantage in the second half.
Rivals such as Volkswagen and Renault were forced to suspend production of key models.
PSA models were able to meet tougher emissions standards under the WLTP because engineers had equipped diesel models with more-efficient Selective Catalytic Reduction technology, or SCR, by 2017 while other companies had to rush it into production, Picat said on a conference call on Tuesday.
PSA gasoline engines were fitted with particulate filters well ahead of the tests, he said.
In addition, Picat cited PSA Group's "core model strategy," which has reduced the number of models in each brand's lineup. "It was easier for us to prepare for homologation for all our range than for some of our competitors," he said. Automakers with many models and variants, such as VW Group, faced bottlenecks at both in-house test benches and external certification facilities.
Sales of the group's four brands -- Peugeot, Citroen, Opel/Vauxhall and DS -- increased a combined 31 percent in Europe and market share rose 3.8 percentage points to 17.1 percent, with the first full year of Opel sales on PSA's ledgers and strong growth from Peugeot and Citroen, each up more than 5 percent.
PSA remains heavily dependent on its home region. European sales were 3.1 million units, nearly 80 percent of global volume.
Excluding Opel/Vauxhall, sales of the other brands fell by 12 percent globally to 2.9 million units. In Europe, sales were up by 5 percent without Opel.
China struggles
Sales volumes declined sharply outside of Europe, with China down by 32 percent to 262,583 units; Middle East and Africa down 53 percent to 291,998 as PSA exited Iran following reimposition of sanctions; and Latin America down 15 percent to 175,257 units as the Argentine economy slumped badly. Small gains were recorded in Eurasia and India/Australia, but both are minor markets for the group.
China, once PSA's second-largest market with more than 700,000 annual sales, has been a low point for PSA. CEO Carlos Tavares has made fixing operations there a priority, but a decline in overall sales there in 2018 and increased competition from domestic automakers have made that task more difficult.
Asked whether PSA was still strongly committed to China, Picat said: "We are currently working with our partners to solve the situation."
Picat said the group would announce its 2019 sales forecasts on Feb. 26 at its financial results conference.
SUV growth
PSA’s best-selling model was the Peugeot 208, with about 295,000 unit sales, but volumes fell by 9.8 percent. SUVs and crossovers showed strong gains.
- The Peugeot 3008 SUV was the group’s second best selling model, with 265,000 sold, a gain of 17 percent. The midsize 5008 SUV gained 27 percent in its second year on the market, while the 308 fell by 14 percent. Overall Peugeot sales were down by 18 percent, due to exiting the Iranian market.
- Citroen was led by the C3 hatchback, with sales steady at 252,000, but the new C3 Aircross SUV had a strong first full year with 123,000 sales to become the No. 3 model after the Berlingo small LCV. Global Citroen sales were down by 0.9 percent.
- DS sales were largely flat, with older, Citroen-based models continuing to fall sharply with the new DS 7 Crossback SUV sold about 28,000 units in its first year on the market.
- Light-commercial vehicles were a a bright spot, with an 18 percent increase (including Opel) to 564,000 sales.
Reuters contributed to this report
