PSA Peugeot Citroën Faces Sharply Lower Demand in Europe But Achieves Gains in International Markets Worldwide Sales of

  PSA Peugeot Citroën Faces Sharply Lower Demand in Europe But Achieves Gains
  in International Markets Worldwide Sales of 2,965,000 Units in 2012

Business Wire

PARIS -- January 9, 2013

Regulatory News:

2012 Highlights

  *Worldwide sales of assembled vehicles down 8.8% to 2,820,000 units.
  *Sales of new vehicles and CKD units down 16.5% to 2,965,000 units,
    reflecting the suspension of CKD sales in Iran.
  *Percentage of assembled vehicles sold outside Europe up sharply, to 38% of
    the total from 33% in 2011.
  *European leader once again in low-carbon vehicles, with corporate average
    CO[2] emissions of 122.9 g/km.
  *Successful launch of the Peugeot 208.
  *300,000 Citroën DSs sold worldwide since launch.

In 2012, the worldwide automobile market showed decidedly mixed trends, with
demand continuing to contract in 30-country Europe (down 8.6%), while
expanding in Russia (up 10.1%), China (up 7.2%) and Latin America (up more
than 5.6%).

In this environment, PSA Peugeot Citroën (Paris:UG) recorded worldwide unit
sales of 2,820,000 assembled vehicles, down 8.8%. Together, sales of assembled
vehicles and CKD units totalled 2,965,000 ,down 16.5%.

The decline in Group sales reflects the crisis affecting the European
automobile market. Southern Europe, where PSA Peugeot Citroën has a
particularly large presence, was hit hardest, with the market down 13.3% in
France, 14.9% in Spain and 20.9% in Italy. The Group’s 2012 market share in
30-country Europe came to 12.7%, corresponding to a share of 13% based on the
2011 market weighting.

In addition, the decision to suspend sales of CKD units in Iran as from
February in compliance with international regulations, which made it
impossible to finance Iran-bound sales due to tighter international sanctions,
also impacted Group sales in 2012. A total of 457,900 CKD units were sold in
Iran in 2011.

PSA Peugeot Citroën’s strategy to expand its international presence has
produced results, with the percentage of assembled vehicles sold outside
Europe climbing from 24% of the total in 2009 to 33% in 2011 and 38% in 2012.
The Group confirms its target of generating 50% of sales outside Europe in
2015.

The year was also shaped by the successful launch of the Peugeot 208, with
221,000 units sold. The introduction of 3-cylinder petrol engine versions in
the summer added to the sales dynamic.. In Europe, the Peugeot 208 has been
the top-selling diesel in its segment since June. This performance helped make
Peugeot the leading European brand in the segment in the second half of the
year. In December, the Peugeot 208 was the best-selling car in France, all
categories combined.

Similarly, the Group’s upmarket strategy is on track. The percentage of sales
generated by premium vehicles has doubled over the past three years to 18% of
the Group total. This reflects, in part, the first full year of sales of the
Group’s world premiere diesel hybrids. With 22,000 units delivered in 2012,
PSA Peugeot Citroën ranks second in hybrid vehicle sales in Europe, where one
Peugeot 508 out of five, one Peugeot 3008 out of six and one Citroën DS5 out
of four feature diesel hybrid technology.

Lastly, PSA Peugeot Citroën maintained its low-carbon leadership in Europe,
with corporate average CO[2] emissions of 122.9 g/km.

Frédéric Saint-Geours, Executive Vice-President, Brands noted:

“PSA Peugeot Citroën has felt the full force of the sustainable decline in
Europe's automobile markets. This situation makes our international strategy
more necessary than ever. We stepped up our global expansion in 2012 and will
continue in 2013, with a growing presence in China, Latin America and Russia.
2013 will be another difficult year in Europe, but we have innovative and
attractive vehicles there. The Group will build on the success of the DS line,
the Peugeot 208, our HYbrid4 vehicles and Europe's lowest carbon emissions
line-up. We will also be lifted by new launches in 2013, with the largest
number of new Peugeot and Citroën models ever coming to market in a single
year.”

Negative impact from Southern Europe

The overall European market contracted by 8,6% in 2012, with the individual
markets experiencing a variety of trends. Southern Europe*, which accounted
for 57% of the Group’s European sales in 2012, was particularly hard hit by
the economic crisis. Automobile demand declined by 13.3% in France, 14.9% in
Spain, 20.9% in Italy and 40% in Portugal—all countries in which the Group has
a heavy presence. This particularly unfavourable market mix was a major factor
in the Group’s lower market share, which stood at 12.7% versus 13.3% in 2011.

In this very difficult environment, PSA Peugeot Citroën nonetheless increased
its share of the Italian market by 0.6 pt to 10.2%. Peugeot and Citroën also
benefited from the healthy UK market (up 3.8%), where the popularity of
Citroën's DS line and a good performance by the Peugeot 208 lifted market
share by 0.2 pt to 9.3%. In Spain, PSA Peugeot Citroën reached a market share
of 17.1%, which makes Peugeot and Citroën the second and third best-selling
brands in the market.

In France, where sales of passenger cars and light commercial vehicles
contracted by 13.3% in relation to 2011, Peugeot was the most resilient French
brand, with 369,000 vehicles sold and 16.2% of the market.

The Group also confirmed its leadership of the European light commercial
vehicle market, with a share of 20.8%.

* France, Spain, Italy and Portugal

Global expansion produces results

China: sales up faster than the market

In a Chinese automobile market up 7.2% in 2012, Group sales rose 9.2% to
442,000 units, lifting market share to 3.5%. Sales of Peugeot brand vehicles
jumped 24% to 216,000 units.

These figures confirm the success of the Group’s strategy in China. The
introduction of the Peugeot 3008 and Citroën C4 L in early 2013, followed by
the Citroën C-Elysée and Peugeot 301, will continue to drive sales growth at
Dongfeng Peugeot Citroën Automobile (DPCA) during the year, as will the
development of the dealer networks.

The Group’s second joint venture in China, Changan PSA Automobile (CAPSA)
launched the Citroën DS line in 2012 as a premium brand and is building a
dedicated dealership network. CAPSA’s product strategy, which combines
imported vehicles and local production, will enter a new phase in the second
half of 2013 when production begins on the Citroën DS5 at the Shenzhen plant.

Latin America: a mixed situation

Lifted by an improved economic climate in Brazil, the Latin American car
market expanded by 5.6% in 2012. Group registrations declined by 8.3% to
277,000 units, for a market share of 4.8%.

The situation in Latin America was mixed in 2012. In Brazil, the sales tax on
imported vehicles primarily helped the B popular segment, in which the Group
has no presence. PSA Peugeot Citroën sales in Brazil were also negatively
impacted by work to increase production capacity at the Porto Real plant,
which has now been completed. In Argentina, on the other hand, registrations
rose by 4.4%, giving the Group a 13.8% share of the market. For the second
year in a row, the Palomar plant was the country’s leading automobile
production site, turning out 129,500 vehicles in one year.

In 2013, sales in Latin America will be lifted by recent and upcoming model
launches, notably the Citroën C3 and the Peugeot 208.

Russia: vibrant sales and production

The Russian automobile market continued to grow in 2012, by 10.1%. In this
environment, Group sales rose by 7.4% to 77,300 units, for a market share of
2.6%. This performance reflects the 2012 launches of the Peugeot 408, 508 and
4008 and of the Citroën C4 Aircross, DS4 and DS5. Sales trends were
particularly vibrant in the light commercial vehicle segment, where Group
registrations increased by 18% in a market up 3.9%.

Peugeot and Citroën continued to extend their dealer networks, which now cover
more than 90% of the country, including Russia’s 25 largest cities. In
addition, the Kaluga plant became fully operational in July.

The Group also enhanced its presence in Ukraine, with market share widening to
3.4% from 2.9% in 2011.

Total sales in the CIS (including Russia) reached 88,000 units over the full
year, an increase of 110% since 2009.

Rest of the world

In the rest of the world, Group sales rose by 16.5%, with an exceptional
performance in Algeria and other North African countries. In an Algerian
market up 45%, Group sales more than doubled to 81,000 units from 39,800 in
2011.

Continued drive to move the range upmarket

In an increasingly “bipolar” European market experiencing a sustained decline,
the strategy to move the Peugeot and Citroën brands upmarket has proven more
relevant than ever.

Premium vehicles now account for 20% of Peugeot new vehicle orders, and
Citroën has sold close to 300,000 vehicles from the DS line (DS3, DS4 and DS5)
since it was launched in March 2010. The DS line accounted for 18% of
Citroën's new vehicle orders in Europe in 2012.

In Germany, the Citroën DS3 was voted “Best Import” by the readers of Auto
Zeitung magazine.

The new Citroën DS3 Cabrio will be added to the line-up in early 2013.

PSA Peugeot Citroën leads in reducing CO[2] emissions and exceeds European
requirements

In 2012, PSA Peugeot Citroën maintained its position as the European leader in
carbon reduction, with corporate average emissions of 122.9 g/km* of CO[2]
versus 127.5 g/km in 2011.

This performance exceeds the 130 g/km target set by Brussels for 2015.

38.1% of Group vehicles sold in Europe emit less than 111 g/km of CO[2],
versus 30.3% in 2011.

The Group is pursuing four synergistic avenues to continue reducing carbon
emissions:

  *Optimised internal combustion engines, with the family of 3-cylinder
    petrol engines.
  *Micro-hybrid technologies, with the extension of the second-generation
    e-HDi Stop & Start on all Peugeot and Citroën diesel ranges.
  *Electric vehicles.
  *Hybrid technologies, with the market introduction of the Peugeot 3008, 508
    and 508 RXH and the Citroën DS5.

* Updated figures as of 31 October 2012

Outlook for 2013

The European market should continue to contract in 2013, by 3% to 5%. In this
environment, the Peugeot and Citroën brands will step-up their sales offensive
with 17 launches worldwide, of which nine in Europe. This should lower the
line-up's average age to 3.5 years.

The Group will pursue its upmarket strategy with numerous new models in 2013,
including the Citroën DS3 Cabrio and the Peugeot 208 GTI, 208 XY and 2008.

In China, DPCA has four launches scheduled and Changan PSA Automobile (CAPSA),
the Group’s second joint venture, will begin local production in the second
half of the year. These developments give PSA Peugeot Citroën a solid footing
to pursue its development in a market that will enjoy sustained growth in
2013.

In Latin America, after a year of transition and transformation, the Group is
well primed for a return to sales growth as the Porto Real plant begins
production of the Peugeot 208 for market launch in the spring and other models
are introduced to the market during the year.

In a Russian market expected to grow by around 5%, the Group will pursue its
development strategy by leveraging a young range that includes six models
launched in 2012. This dynamic will be maintained in 2013 with the
introduction of the Peugeot 208 and 301 and the Citroën C-Elysée and C4 L.

Rising demand in these priority growth regions, coupled with local market
share gains, will enable PSA Peugeot Citroën to meet its target of achieving
50% of sales outside Europe in 2015.

                                                             
Worldwide Sales of PSA Peugeot Citroën Passenger Cars and Light Commercial
Vehicles, 2012 versus 2011
                                                                           
                                                 2011       2012
Europe*                                 Peugeot    1,101,000  947,000
                                        Citroën    962,000    811,000
                                       Total PSA  2,063,000  1,758,000
Russia                                  Peugeot    45,000     45,000
                                        Citroën    29,000     34,000
                                       Total PSA  75,000     78,000
Latin America                           Peugeot    190,000    174,000
                                        Citroën    136,000    110,000
                                       Total PSA  326,000    284,000
China                                   Peugeot    174,000    216,000
                                        Citroën    231,000    226,000
                                       Total PSA  404,000    442,000
Rest of the world                       Peugeot    146,000    173,000
                                        Citroën    78,000     84,000
                                       Total PSA  224,000    257,000
Total Assembled Vehicles                Peugeot    1,656,000  1,555,000
                                        Citroën    1,436,000  1,265,000
                                       Total PSA  3,092,000  2,820,000
CKD Units                               Peugeot    458,000    145,000
                                        Citroën    0          0
                                       Total PSA  458,000    145,000
Total Assembled Vehicles and CKD Units  Peugeot    2,114,000  1,700,000
                                        Citroën    1,436,000  1,265,000
                                       Total PSA  3,549,000  2,965,000

* Europe= EU, EFTA and Croatia

Contact:

PSA Peugeot Citroën
Media Relations
Jonathan Goodman, +33 (0) 1 40 66 47 59
jonathan.goodman@mpsa.com
or
Pierre-Olivier Salmon, +33 (0) 1 40 66 49 94
pierreolivier.salmon@mpsa.com
or
Cécile Damide, +33 (0) 1 40 66 53 89
cecile.damide@mpsa.com
or
Caroline Brugier-Corbiere, +33 (0) 1 40 66 58 54
Caroline.brugier-corbiere@mpsa.com
or
Laure De Servigny, +33 (0) 1 40 66 35 42
Laure.deservigny@mpsa.com
or
Jean-Baptiste Mounier, +33 (0) 1 40 66 54 22
jeanbaptiste.mounier@mpsa.com
or
Investor Relations
Carole Dupont-Pietri, +33 (0) 1 40 66 42 59
carole.dupont-pietri@mpsa.com
or
Olivier Sartoris, +33 (0) 1 40 66 43 65
olivier.sartoris@mpsa.com
or
Christophe Fournier, +33 (0) 1 40 66 57 45
christophe.fournier@mpsa.com
or
Céline Jamet, +33 (0) 1 40 66 48 52
celine.jamet@mpsa.com
 
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