Citroen has announced its decision to exit the Australian market by the end of 2024, following a significant decline in sales and limited growth prospects. The decision was made after a comprehensive analysis of the competitive environment, existing and upcoming Citroen models, and the preferences of Australian consumers. In the first seven months of 2024, Citroen managed to sell only 87 vehicles in Australia, marking a 35.6% drop compared to the same period in the previous year. Despite offering discounts in July, the brand struggled to attract buyers, leading to the difficult decision to cease operations.
Citroen’s history in Australia dates back to 1923, when the first Citroen vehicle arrived in the country. Over the years, the brand had ambitions of establishing a strong presence, even involving local production at one point. However, the company eventually transitioned to importing vehicles, with the current distribution managed by the local company Inchcape. As of now, Citroen offers only four models in Australia: the previous-generation C3 hatchback, the C4 and C5 Aircross crossovers, and the C5 X crossover-liftback.
The brand’s decline in Australia is stark when compared to its peak sales in 2007, which have since plummeted by 94%. The decision to exit the market reflects the broader challenges faced by French automakers in Australia. Peugeot and Renault, Citroen’s sister brands, also face difficulties, with Peugeot selling 1,341 vehicles in the same period, a 2.4% drop, and Renault selling 3,372 vehicles, a 33.9% decline.
Despite Citroen’s withdrawal, Peugeot will continue to operate in the Australian market, with hopes of maintaining its position. Renault, while also experiencing a decline, remains active as well. The Australian automotive market is currently dominated by Japanese and American brands, with Toyota leading the pack, followed by Ford, Mazda, Kia, and Mitsubishi. These brands have shown strong growth, reflecting the preferences of Australian consumers for reliable and well-supported vehicles.
