Written by | Song Yuting
After several twists and turns, from the peak to the quagmire, DPCA finally realized the importance of localization. At the beginning of this year, it tried to increase the internal competition mechanism of the peugeot and Citroen brands with the "two rooms and one hall" project to mobilize the enthusiasm of the two brands.
This is both an opportunity and a challenge, because today's Chinese auto market is changing rapidly, and it is not enough to regain the ticket to the mainstream track with a Single Versailles.
Back in the past, when French cars first entered the Chinese market, it coincided with the rapid growth period of China's automobile market and achieved good results. In 2015, DPCA achieved a peak sales volume of 704,800 units.
However, when the tide fades, the problems of high pricing of French cars, slow product upgrading, and lack of marketing methods are gradually revealed, resulting in the increasingly sluggish sales of French cars in the domestic market. From 2016 to 2020, DPCA began to decline, with sales falling by 15.2%, 36.85%, 32.89%, 55.17%, and 55.74% respectively, and the sales volume suffered "waist cut" for two consecutive years.
Not only that, with the growth of the number of years of french users, there are more and more complaints about their quality on major platforms, so that most consumers are looking forward to French cars, and in terms of brand power, the advantages of French cars are reduced.
In order to reverse the decline, Dongfeng Citroen and Dongfeng Peugeot brands have also made efforts at multiple levels such as internal reform, products and marketing since 2018.
Subsequently, DPCA successively released the "Yuan" revival plan and the "Yuan +" plan to change the sales and performance of the continuous downturn. Among them, the implementation of the dual-brand collaborative development strategy has become an important measure, which is intended to reduce the cost of building stores.
After the epidemic, DPCA aimed at the localization strategy, integrated and optimized and slimmed down the production capacity of the original three factories in Wuhan, on the one hand, saving expenses, improving efficiency, reducing production capacity waste, improving cash flow, on the other hand, providing more capital reserves for the planning and development of future products, and better promoting the "Yuan +" plan of DPCA to lighten up.
In 2021, with the opening of the new Versailles CX5, the rejuvenation plan of DPCA has begun to bear fruit, and it has also laid a good foundation for continuing to deepen localization and understand the needs of Chinese consumers.
In 2021, with the help of Versailles C5 X, 2021 Tianyi, mid-term revamped Peugeot 4008/5008 and other models, DPCA sold 100,567 units, an increase of 100.07% year-on-year, and completed the sales target on schedule. Among them, Dongfeng Citroen's annual sales increased by 137% year-on-year, and Dongfeng Peugeot's annual sales increased by 74% year-on-year.
However, in the past three years, peugeot and Citroën brands have only had a new model of Versailles. What is more difficult is that China's auto market welcomes the new four transformations, and local brands, new cars and other forces are rising, but Shenlong is developing slowly in the field of electrification.
It is not easy for DPCA to turn around, and it is not easy to gain a foothold under the pressure of independent brand upwards, mainstream joint venture brands rolling up, and luxury brands, and it must be injected with another shot of strength to stabilize the situation.
Therefore, after the Spring Festival in 2022, the new joint venture model known as "two rooms and one hall" in Dongfeng Interior has surfaced, and Peugeot and Citroen have nominally separated. In action, Peugeot stayed in Shanghai, dongfeng Citroen marketing department moved back to Wuhan; Peugeot still as originally planned as a joint venture, Citroën led by Dongfeng technology development.
However, at that time, the "two rooms and one hall" plan had not yet been conclusive, and it was only circulated in the anecdote, or an option discussed by both shareholders. Until March 1, Carlos Tavares, CEO of Stellantis Group, confirmed the "two-bedroom, one-room" plan in the release of the group's long-term strategic development plan.
Indeed, China's excellent achievements in electrification, intelligent networking, software and other aspects can make products better adapt to the Chinese market and bring more suitable and better products to Chinese consumers. The change in the general environment has made DPCA realize that it is important to deepen the localization and develop new energy, so it is inevitable that the Chinese side will lead the Citroën brand.
Nowadays, the "two rooms and one hall" project has been confirmed for nearly two months, just when everyone thought that the Dragon Automobile was going to fight a turnaround battle vigorously, the Dragon seemed to be hidden and did not act again.
It is worth noting that according to some media reports recently, the "two rooms and one hall" project has been shelved.
The project that should have been a strong needle was shelved before the heat dissipated, which can be seen that the road to the revival of DPCA has a long way to go. If DPCA continues to be so indecisive, perhaps the last chance to fight in the Chinese market will be lost. 【iDailycar】