PSA Sets Ambitious 10% Target for DS in China’s Luxury Market
PSA Peugeot Citroën aims to capture a tenth of China’s luxury car sales by 2018 with its DS brand, targeting 200,000 units after modest early results.
PSA Peugeot Citroën is aiming for a 10 percent share of China’s luxury car market within four years, banking on the Citroën DS brand to deliver 200,000 sales by 2018. The target, set out by DS China general manager Arnaud Ribault, represents a major leap from the 3,500 DS vehicles delivered in 2013.
DS brand strategy in China
Citroën began local production of DS models in China in September 2013, a move designed to boost the brand’s appeal and sidestep import tariffs. PSA is positioning DS as a distinct marque, not just a premium Citroën, and is targeting customers in fashion and design rather than those traditionally loyal to German premium brands. According to Ribault, the typical DS buyer is different from the Audi or BMW customer, with the company suggesting that someone considering an Audi A6 would not cross-shop a DS5.
The group plans to double its DS dealership count in China to 100 by the end of 2014, supporting the sales push with expanded local manufacturing. This network growth is intended to give the DS brand a national footprint and support ambitious volume targets. For context, Mercedes-Benz took five years to reach comparable sales volumes after starting local production in China.
Product line-up and pricing
The DS 5LS compact saloon is the second DS model to be produced in China, following the DS5. The 5LS launched in Beijing on 28 March 2014 with a pre-launch starting price of 149,900 yuan (about £14,300 at the time), undercutting the locally built Audi A3 saloon, which started at 199,900 yuan. PSA is also planning to add a locally produced SUV to the DS line-up in the fourth quarter of 2014, further broadening the appeal of the brand in a segment that is expanding rapidly in China.
| DS 5LS | 149,900 yuan |
|---|---|
| Audi A3 Saloon | 199,900 yuan |
Challenges and long-term outlook
While PSA’s sales ambitions are high, the company’s new CEO Carlos Tavares has cautioned that it could take up to 20 years for DS to compete directly with the established German premium brands in China. The brand’s focus on design and individuality is intended to set it apart, but breaking the dominance of Audi, BMW and Mercedes-Benz remains a long-term challenge. DS’s success in China is seen as vital to PSA’s broader efforts to return to profitability and reduce reliance on the shrinking European market.
