French carmaker Citroen, with over a century of history in Australia, is now exiting the market due to poor sales. Despite being the oldest active car brand in Australia, Citroen has struggled to attract buyers, with only 87 units sold in the first half of 2024. Surprisingly, luxury brands like Ferrari have sold more vehicles in Australia than Citroen.
Citroen’s Exit from the Australian Market
Citing challenges in maintaining a profitable business, Citroen has decided to cease operations in Australia. This marks a disappointing end for a brand that has been in the country since 1923, just four years after its founding in France. Citroen’s cars will no longer be sold in Australia after November 1, 2024. However, the company will continue to honor warranties and provide repair and maintenance services through its 35 service centers across the country. Currently, only nine Citroen dealerships remain operational in Australia, selling models like the previous-generation C3, C4, C5 Aircross, and C5X until November.
A Sales Struggle
Citroen’s exit is especially striking given that it offers affordable mainstream cars that should appeal to a broad audience. Yet, sales have lagged behind luxury brands like Ferrari, Lotus, Bentley, and Maserati. With just 87 units sold in the first half of 2024, Citroen’s performance in Australia has been dismal.
Stellantis’ Struggles
Citroen’s parent company, Stellantis, is also facing challenges, with several of its brands experiencing poor sales. There are rumors that Stellantis might consider discontinuing underperforming brands or withdrawing from struggling markets, similar to Citroen’s exit from Australia.
Citroen’s Strategy in India
Citroen’s performance in India has also been underwhelming, with only 335 units sold in July 2024, placing it among the lowest-selling brands in the country. In response, Citroen has shifted its strategy by launching the updated 2024 C3 with additional features. They’ve also introduced the new Basalt coupe SUV at an aggressive starting price of ₹7.99 lakh (ex-showroom), making it significantly cheaper than its competitors.