Dongfeng PSA Peugeot Citroen Automobile Co., PSA Peugeot Citroen’s joint venture with Dongfeng Motor Group, lost more than 2.5 billion yuan ($363 million) in the first six months as sales fell sharply.
Dongfeng PSA deliveries plunged 60 percent to 63,027 in the first half.
The joint venture’s revenue also tumbled 60 percent to 7.0 billion yuan during the period, according to Dongfeng, a Hong Kong-listed, state-owned Chinese automaker.
In the first half of 2018, Dongfeng PSA posted a net profit of 200 million yuan. But it ended all of 2018 with a loss of nearly 3.7 billion yuan.
Dongfeng PSA, headquartered in the central China city of Wuhan, can produce up to 840,000 vehicles annually for the Peugeot and Citroen brands.
After hitting a high of 704,000 in 2015, annual deliveries of the joint venture have steadily declined over the past three years. In 2018, sales slumped 33 to around 253,000 vehicles.
PSA also operates a partnership with Changan Automobile Co., which builds and markets vehicles under the Citroen DS brand.
Changan PSA, with annual production capacity of 200,000 vehicles, is also struggling with losses, largely because of limited sales since it was established in 2011.
In 2018, Changan PSA sold fewer than 3,900 vehicles, according to the China Passenger Car Alliance, a Shanghai consultancy.
Financial information on Changan PSA is unavailable.
