Citroën to Cease Sales Operations in Australia After 101 Years

In a surprising move, French car manufacturer Citroën has announced it will cease sales operations in Australia from November 1, marking the end of a century-long presence in the Australian automotive market. The decision comes as the brand struggles with increased competition and declining sales.

Citroën’s journey in Australia began in 1923, just four years after the brand’s inception in Europe. Despite its long history, recent years have seen a significant drop in sales. In the first half of 2024, Citroën recorded only 87 new car sales, a sharp decline of over 35% from the 228 sales in the same period the previous year. This represents a staggering 94% drop from its peak sales in 2007.

📢 In a surprising move, Citroën will cease sales operations in Australia from November 1, ending a 101-year presence. The decision follows declining sales and increased competition. Citroën will continue to support existing customers through its nationwide dealerships. #Citroën… pic.twitter.com/pYvtkR9KTm

— THE TIME PRESS (@thetimepress_) September 26, 2024

Challenges and Market Dynamics

David Owen, General Manager of Citroën Australia, cited the rapidly evolving and competitive nature of the Australian market as a key factor in the decision. “Whilst we acknowledge 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 industry and local market, alongside changing consumer demands,” Owen stated. The decision was made after careful consideration of the current and future product availability for the Australian market.

Support for Existing Customers

Despite ceasing sales, Citroën will continue to support existing customers through its nine nationwide dealerships, which will provide service and maintenance. “We know there will continue to be Citroën owners in Australia, with many Citroën vehicles still on the road,” Owen added. The company has assured that all new-car orders placed before November 1 will be fulfilled, and it will uphold its pre-paid servicing, five-year/unlimited-kilometre warranty, and capped-price service plans.

Historical Significance

Citroën’s legacy in Australia includes notable milestones such as the Citroën 5CV being the first motor vehicle to circumnavigate Australia in 1925. This historic vehicle, driven by 22-year-old Neville Westwood, now resides in the National Museum of Australia in Canberra.

Recent Efforts and Market Strategy

In an attempt to boost sales, Citroën offered discounts of up to $30,000 on its models in July. The brand had also shifted its focus to premium vehicles, offering models like the C3, C4, C5 Aircross, and C5 X. However, these efforts were not enough to counteract the declining trend, with sales dropping from 735 vehicles in 2017 to just 87 in the first half of 2024.

Conclusion

Citroën’s departure from the Australian market marks the end of an era for the longest continuously-running automotive brand in the country. The brand’s decision reflects the challenges faced by automakers in adapting to rapidly changing market conditions and consumer preferences.