Auto business picks up PSA Group Announces third quarter results

Published: Oct 29, 2020 08:30

SMM News: October 28th, PSA Group announced the third quarter results. According to the data, the overall operating income of PSA Group in the third quarter of 2020 was 15.453 billion ou yuan, compared with 15.579 billion ou yuan in the same period in 2019, down 0.8 per cent from the same period last year. Of this total, the group's automotive business (including five car brands: Peugeot, Citroen, DS, Opel and Vauxhall) had revenue of 11.964 billion ou yuan, up 1.2 per cent from a year earlier.

Previous data showed that PSA's revenue fell 34.5% in the first half of 2020 compared with the same period last year, including a 35.5% decline in revenue from the auto business. By contrast, PSA's third-quarter results have picked up significantly.

In addition to revenue, PSA also shrugged off the haze of the first half of the year and began to catch up. Data show that PSA sold 1.03 million vehicles in the first half of 2020, an average of 515000 per quarter, while the group sold 589000 vehicles in the third quarter.

PSA said that the factors that have a positive impact on the revenue of the automobile business include product power, positive pricing strategy and so on. In terms of products, one of the features is the acceleration of electrification, such as Peugeot 208, Peugeot 2008, Vauxhall Corsa and so on. In addition, on July 24 this year, Tianyi C5 AIRCROSS New Energy was officially launched as the first plug-in hybrid model under Dongfeng Citroen.

In the Chinese market, PSA Group is also accelerating its efforts. On October 24th, Shenlong Automobile Co., Ltd., a joint venture between PSA Group and Dongfeng Company, held the Dragon Automobile Culture Festival in Wuhan. DPCA announced that it would launch 14 new models in the next five years. Among them, Dongfeng Peugeot will implement a new product strategy to ensure that at least one new model will be put on the market every year, and a variety of customized and exclusive models will be launched. At the same time, PSA Group's latest technologies such as plug-in hybrid and four-wheel drive are also the first to be introduced into the Chinese market and have been applied to the first 4008 PHEV 4WD model with "three-engine and four-wheel drive" technology. In addition, Dongfeng Peugeot 508L PHEV will be launched at the end of the year, the new 4008Citroen 5008 and Dongfeng Citroen internal code "E43" will also be launched in 2021.

Editor's comments:

After a difficult period in the first half of the year, we can see that PSA is constantly adjusting and optimizing the product structure, improving sales, and has achieved results. In addition, while continuously developing towards electrification, the Group also continues to optimize its profitability and cash creation ability, and continues to develop its automotive market in Europe, Latin America, Russia and China. With the acceleration of competition in the global automobile industry, PSA Group still needs to catch up in many aspects.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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