Sales at PSA Peugeot Citroen’s sole China joint venture, Dongfeng Peugeot Citroen, remain stuck in a downward spiral despite a recovery underway in the broader market.
The joint venture delivered just 5,380 Peugeot and Citroen vehicles in June, a decline of 47 percent year over year, according to Dongfeng, a state-owned Chinese automaker listed in Hong Kong.
First-half sales plunged 63 percent to 23,237.
Dongfeng Peugeot Citroen was established in 1992 in the central China city of Wuhan as a 50-50 partnership between Dongfeng and PSA. It can produce up to 700,000 vehicles in China a year.
Annual sales at the joint venture hit a record high of nearly 700,000 in 2015 on demand for new crossover models such as the Peugeot 2008 and 3008. But volume has steadily declined due to a lack of new model launches, with 2019 deliveries just shy of 113,600.
Dongfeng Peugeot Citroen is PSA’s only production venture in China following the closure of a partnership with Changan Automobile Co.
Changan PSA began production in 2013 in the south China city of Shenzhen to build the Citron DS lineup. With annual production capacity of 200,000 vehicles, it failed to achieve meaningful volume.
Despite dismal sales at Dongfeng Peugeot Citroen, PSA has no intention of shuttering the joint venture. The French automaker last month extended the joint venture contract with Dongfeng by 10 years to 2037.
PSA is pushing forward with plans to introduce electrified vehicles in China through the joint venture.
In May, Dongfeng Peugeot Citroen launched sales of its first all-electric vehicle – the battery powered the Peugeot 2008 crossover.
It plans to roll out two hybrid vehicles – plug-in variants of the Peugeot 4008 crossover and the Peugeot 508 sedan -- in the second half of the year.