Australian distributor ditches second French car brand in two years

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Peugeot has become the second French brand to be dropped by Australian distributor Inchcape amid declining sales.

It follows the axing of sister brand Citroen in 2024, though this time the global parent company of both brands, Stellantis, is set to step in to continue its local presence.

Inchcape Australia announced today that it was ending its distribution partnership by mutual agreement with Peugeot’s global parent company Stellantis.

Stellantis Australia has confirmed the Peugeot brand will continue to be sold in Australia, according to Inchcape’s statement.

“As part of Inchcape’s standard approach to portfolio management, we continuously review our partnerships to ensure we have the right portfolio of brands for our business, aligned with our strategic growth objectives,” said Inchcape.

Inchcape is the long-time distributor of the Subaru brand in Australia, and in late 2024 became the distributor for Chinese brand Deepal.

The company took on Peugeot and Citroen in 2017 but axed the latter brand seven years later due to appallingly low sales.

Peugeot sales have reached only 373 registrations to the end of May this year, with more than half that figure accounted for by commercial vans. Year-to-date sales are down 35 per cent.

Peugeot’s sales have been declining ever since they reached nearly 9000 units in 2007. Last year was a record low of 1350 new-car registrations.

The leading French brand in Australia is Renault, which is managed locally by another importer, Ateco. Renault sales to the end of May were 1695 units, though also down – by 12 percent – compared to this time last year.

“We are working collaboratively with Stellantis to ensure a smooth transition for the brand, with a focus on supporting customers, dealers and partners,” added the Inchcape statement.

“Inchcape will continue to support the sale of existing stock, warranty and servicing during the transition period, while working closely with Stellantis as it progresses future distribution arrangements in Australia.”

There has yet to be any statement from Stellantis Australia confirming its future plans for Peugeot.

Peugeot passenger cars and SUVs include the 308 hatchback, 408 crossover, 2008 compact SUV, 3008 midsized SUV, and 5008 large SUV.