Citroen will no longer sell new cars in Australia after years of declining sales and increased competition.
The French car brand has made the shock announcement that it will cease sales operations from November 1, bringing to an end a century of business in Australia.
The first Citroën arrived in Australia 101 years ago, in 1923, just four years after its launch in Europe.
However, in recent years, Citroën has had to deal with increasing competition and low sales.
Citroën recorded a record low of just 87 new car sales in the first six months of 2024, down more than 35 percent from 228 sales in the same period last year.
The brand, which is Australia’s longest-running automotive brand, saw sales fall a whopping 94 per cent from their peak in 2007.
Citroen Australia managing director David Owen said the brand’s decision was influenced by the “rapidly evolving” Australian market.
“While we recognise and celebrate Citroën’s rich history in the Australian market, we must look to the future and consider the rapidly evolving, dynamic and competitive nature of the local industry and market, along with changing consumer demands,” Owens said.
Citroën suspends sales of new cars after 101 years in the Australian market
‘The decision was made after careful consideration of the current and future product available for our country, in the context of the local market and the preferences and requirements of Australian new vehicle buyers.’
The nine Citroën dealerships across the country will only provide vehicle service and maintenance support to current Citroën owners.
“We know that there will continue to be Citroën owners in Australia and that many Citroën vehicles will continue to be on the road,” Owens added.
‘Our passionate Citroën Australia team and dealer network are committed to supporting our customers’ ongoing vehicle maintenance needs.’
Citroen Australia said all new car orders placed before November 1 will be honoured and will retain its prepaid servicing, five-year/unlimited mileage warranty and capped-price servicing plans.
The announcement comes after CitroIn July, BMW offered discounts of up to $30,000 on its models in an attempt to clear out old stock and boost sales.
Peugeot has now introduced similar significant discounts, raising concerns about the brand’s future in Australia.
In recent years, the Citroin It had also phased out many of its entry-level models and focused on sales of its premium vehicles.
The company offered only four models: the C3, the C4, the C5 Aircross and the C5 X.
The French car brand cited increased competition and falling sales as some of the reasons behind its decision to exit the Australian new car market.
The brand’s sales have been on a downward trend since 2017, after recording 735 new car sales, compared to 965 in 2016.
In subsequent years, sales fell to 494 vehicles in 2018, 400 in 2019, 296 in 2022 and 228 in 2023.
Sales are in stark contrast to the company’s record annual total of 3,800 vehicles in 2007, when the brand was distributed by independent importer Ateco.
Several independent dealers have sold Citroën in Australia for the past 101 years, and Inchcape, which also distributes its sister brand Peugeot, has been selling vehicles since July 2017.
In 1925, the Citroën 5CV was the first motor vehicle to circumnavigate Australia, with just 48,000 kilometres on the odometer.
The car, driven by 22-year-old Neville Westwood, now resides at the National Museum of Australia in Canberra.
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