Car Maker Ends Australian Shipments After Just 373 Sales

• Citroën to cease vehicle sales in Australia
• It follows a decline in sales

A major automotive company's distributor has announced it will stop delivering cars to Australia.

After nine years of supplying the cars, Inchcape Australasia will remove Peugeot from its range.

"As an integral part of Inchcape's usual method of managing its portfolio, we regularly assess our collaborations to make sure we maintain the appropriate collection of brands for our company, in line with our strategic expansion goals," a statement said.

Consequently, Inchcape Australia and Stellantis have reached a mutual decision to terminate their distribution agreement for Peugeot in Australia, with the exact termination date yet to be determined after a transitional phase.

Stellantis has announced that the Peugeot brand will remain active in Australia and will share details about its regional strategies at an appropriate time.

The statement follows several years of declining sales for French-produced products. vehicles that have nearly been reduced by half in Australia since 2019.

Peugeot managed to sell just 373 vehicles in Australia during the initial five months of this year – representing a 35 percent decrease compared to the lowest level recorded in 2025.

It is expected that sales will be below 1,000 in 2026, following the sale of only 1,350 units during the previous year.

This is nothing like the company's peak period in 2005, when it managed to sell over 7,000 cars.

The announcement follows two years after Inchcape Australia discontinued the sibling brand Citroen, which sold fewer than 1,000 vehicles annually since 2015, after reaching a high of 3,803 sales in 2007.

Nevertheless, Chinese imports have risen ten times over in recent years and are currently the leading supplier of vehicles to Australia, with over 220,000 units sold in 2025.

Stellantis states that it plans to collaborate with China's Dongfeng Motor Corporation to develop more affordable vehicles manufactured in China bearing Jeep and Peugeot branding.

Citroën has a significant presence in Australia, with vehicles being available for purchase in the country even before World War I.

At present, there are 29 Peugeot outlets across Australia, and within Inchcape's range, Subaru stands out as the top-performing brand.

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Chinese Automakers Surpass Japan in Europe Sales

Chinese car manufacturers, previously regarded as "low-cost outsiders" in Europe—the origin of the automotive industry—are now transforming the marketplace. Equipped with cutting-edge technology and affordability, Chinese companies have outperformed Japanese automakers in sales for the first time in May throughout key European nations, despite significant import tariffs. With Europe speeding up its move toward environmentally friendly cars, Japanese makers—who have been slow to adopt electric vehicle technologies—have struggled, enabling Chinese brands to step in more quickly than expected.

As per the European Automobile Manufacturers' Association (ACEA), total sales of five Chinese car manufacturers — SAIC, BYD, Geely Group, Chery Automobile, and Li Auto — amounted to 138,410 vehicles across 31 key European markets during May. This represented a 12.0% presence in the market. Japanese companies came next with 130,424 units sold (11.3%), whereas South Korean makers had 80,644 units (7.5%). This represents the initial instance where Chinese brands surpassed Japanese counterparts in monthly vehicle sales in Europe, coming only slightly after domestic European brands—an impressive transformation over the past three to four years since they fully entered this region.

◇Chinese manufacturers surpass Japan and South Korea in the European new vehicle market

The rise in China's market presence is fueled by more Chinese car manufacturers formally launching their operations in Europe. The ACEA currently includes five Chinese brands, with Geely Group, Chery Automobile, and Li Auto joining SAIC and BYD from April onwards. Volvo, which was once listed individually, is now part of the Geely Group.

Despite considering this expansion, the growth of Chinese brands continues to be impressive. In May, Geely Group sold 38,145 vehicles, BYD sold 32,380, SAIC sold 30,527, Chery sold 27,412, and Li Auto sold 9,945. BYD and Chery achieved remarkable year-over-year increases of 136.6% and 244.1%, respectively. The success can be attributed to models like BYD's plug-in hybrid (PHEV) midsize SUV 'Seal U DM-i' and Chery's PHEV model 'Jaecoo 7', which have been referred to as the "Temu equivalent of the Range Rover" in the British market. BYD's sales volume has almost matched Hyundai's figure of 37,062 units.

◇ Competitive pricing even with tariffs as high as 45%

The emergence of Chinese automobiles aligns with Europe's elevated fuel costs and evolving financial incentive strategies. In May, sales of fully electric vehicles (EVs) across Europe hit 1,247,545 units, reflecting an increase of 31.2% compared to the previous year, whereas plug-in hybrid electric vehicles (PHEVs) saw a growth of 25.0%, reaching 594,439 units. With Germany reintroducing electric vehicle incentives and Italy broadening assistance despite economic slowdowns, Chinese car manufacturers—who excel in transitioning to electric power—gained advantages.

Even though the EU has imposed tariffs as high as 45.3% on Chinese electric vehicles, their affordability remains strong. For example, BYD's compact EV "Dolphin Surf Boost," which faces a 27% duty, sells for €26,990 in Germany but is promoted at €15,940 (about 28 million South Korean won)—under half the price of France's Renault 5 E-Tech, priced at €28,000.

The smart utilization of PHEVs, which encounter reduced duties, has proven beneficial as well. Chery's 'Jaecoo 7 PHEV', available for £35,000 in the United Kingdom, is about £4,000 (7 million South Korean won) cheaper than Kia's Sportage PHEV.

A representative from the sector stated, "Chinese car manufacturers are purchasing underperforming European plants owned by Renault and Nissan to avoid electric vehicle taxes. Rivalry against Chinese companies in international markets is expected to grow even stronger."

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