Citroën will no longer sell new cars in Australia, after years of declining sales and increased competition.
The French carmaker has made the shocking announcement that it will cease sales from November 1, marking the end of a century of doing business in Australia.
The first Citroën arrived in Australia 101 years ago, in 1923, just four years after the brand was launched in Europe.
In recent years, however, Citroën has been struggling with increasing competition and disappointing sales figures.
Citroën recorded a historic low with just 87 new cars sold in the first six months of 2024. That’s a drop of more than 35 percent compared to the 228 sales in the same period last year.
The brand, Australia’s longest-running car brand, has seen sales fall by a staggering 94 percent since peaking in 2007.
David Owen, managing director of Citroën Australia, said the “rapidly changing” Australian market influenced the brand’s decision.
“While we recognise and celebrate Citroën’s rich history in the Australian market, we must look to the future and consider the rapidly changing, dynamic and competitive nature of the industry and the local market, as well as changing consumer demands,” Mr Owens said.
Citroën to stop selling new cars after 101 years on Australian market
‘The decision was made after careful consideration of the current and future product offering for our country, in the context of the local market and the preferences and requirements of Australian new vehicle buyers.’
The nine Citroën dealers nationwide offer service and vehicle maintenance exclusively to existing Citroën owners.
“We know there will still be Citroën owners in Australia and there will still be many Citroën vehicles on the road,” Mr Owens added.
‘Our passionate Citroën Australia team and dealer network are committed to continuing to meet our customers’ vehicle maintenance needs.’
Citroën Australia has said that all new car orders placed before November 1 will be fulfilled and that pre-paid servicing, the five-year/unlimited kilometre warranty and capped-price servicing plans will remain in place.
The announcement comes after Citroën offered discounts of up to $30,000 on its models in July to clear out old inventory and boost sales.
Peugeot has now implemented similar significant cuts, raising concerns over the brand’s future in Australia.
In recent years the Lemonand had also scrapped many of its entry-level models and focused more on selling its premium vehicles.
The company offered only four models: the C3, C4, C5 Aircross and the C5 X.
The French carmaker cited increased competition and declining sales as some of the reasons for its decision to withdraw from the Australian new car market
The brand’s sales figures showed a downward trend compared to 2017, after 735 new cars were sold, down from 965 in 2016.
In subsequent years, sales declined to 494 vehicles in 2018, 400 in 2019, 296 in 2022 and 228 in 2023.
The sales figures were in stark contrast to the record 3,800 vehicles sold by the company in 2007, when the brand was distributed by independent importer Ateco.
Several independent distributors have sold Citroën in Australia over the past 101 years. Inchcape, which also distributes sister brand Peugeot, has been selling vehicles since July 2017.
In 1925, the Citroën 5CV became the first motor vehicle to circumnavigate Australia, with just 48,000 kilometres on the odometer.
The vehicle, driven by 22-year-old Neville Westwood, is now on display at the National Museum of Australia in Canberra.