Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
2-min read

Peugeot SUV's To Reverse Sales Slump In China

The Paris-based group must find "a new business model" and bigger purchasing, logistics and manufacturing savings to offset falling prices.

news18techintern | Reuters

Updated:April 19, 2017, 12:35 PM IST
facebookTwittergoogleskypewhatsapp
Peugeot SUV's To Reverse Sales Slump In China
The French carmaker builds Peugeots and Citroens in China with 13.7 percent shareholder Dongfeng (Photo: Reuters)
Loading...
PSA Group, the maker of Peugeot, Citroen and DS cars, needs more drastic cost cuts and new SUVs to reverse a slump in sales in China, Chief Executive Carlos Tavares said on Tuesday.

The Paris-based group must find "a new business model" and bigger purchasing, logistics and manufacturing savings to offset falling prices, Tavares said at the Shanghai auto show.

His comments highlight the pressures felt by mid-market global carmakers as Chinese consumers turn to increasingly competitive offerings from domestic brands such as Geely, Guangzhou and Baojun, jointly owned by General Motors and SAIC.

The French carmaker builds Peugeots and Citroens in China with 13.7 percent shareholder Dongfeng and assembles its premium DS models with another partner, Changan Automobile.

Shares in PSA, which agreed last month to acquire rival Opel from GM, were down 2 percent at 17.22 euros at 1200 GMT, while the Stoxx Europe 600 autos index was down 1.1 percent.

Competition has intensified in China as rival western brands and their local manufacturing partners slash prices, Tavares told reporters. "The joint ventures panicked."

The Chinese auto market expanded 15 percent overall in 2016, and growth is expected to be slower but positive this year.

But PSA's sales fell 16 percent in the region last year and the decline has accelerated since. Deliveries were down by almost half in the first two months of 2017, when the Citroen brand achieved little more than one-third of its tally for the same period last year.

Demand has also shifted from the saloons and hatchbacks that account for most of PSA's line-up to higher-riding models and Citroen will soon begin Chinese sales of the new C5 Aircross compact SUV, unveiled at the Shanghai show.

"More SUVs in the Chinese market is a must," Tavares said, adding that the group needs "much more cost reductions".

But Tavares declined to give a progress report on PSA's earlier pledge to reduce China production costs by 10 percent annually. The cuts were "hard to achieve", he said.

(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results