Peugeot sees global car sales slide

PSA Group saw sales stall in the first half of the year, after demand faltered in China and the French company was forced to pull out of Iran.

In the year to June, total consolidated world sales were estimated to be 1.9m, compared to 2.18m for the same period a year earlier, a near 13% decline.

In China, where the Peugeot manufacturer has a joint venture with local manufacturers Dongfeng and Changan, sales fell 60.6%, and by 29.3% in Latin America.

In the Middle East and Africa, sales slumped 68.4%. PSA was forced to pull out of Iran as it ran the risk of falling foul of US sanctions against the country. Stripping Iran out of last year’s first-half sales, the 2018 figure for total worldwide sales was 2.03m.

PSA’s core European market held steady, however, with sales largely flat, nudging ahead 0.3% to 1.68m. The best performing brand in Europe was Citroën, which saw sales rise 2.6%.

Car makers are increasingly feeling the pinch, as weak consumer confidence, rising trade tensions and a faltering global economy dampen demand.

In a statement, PSA chairman and chief executive Carlos Tavares said: “Despite the decline of the global automotive markets for the first half, our commercial teams have managed to increase market shares in several countries, especially in Europe and Africa.”

The company is due to publish first-half results next week.