Sales by the PSA Group Increased for the Third Consecutive Year

Regulatory News:

In executing its profitable strategic growth "Push to Pass" plan, in 2016 the PSA Group (Paris:UG) launched the start of a worldwide product offensive that provides for 121 regional launches by 2021.

All the products launched are commercial successes in their market segments:

A perfect illustration of the dynamism of the Peugeot brand, which grew by 12.3% in 2016, the new PEUGEOT 3008 SUV has seen a total of more than 60,000 orders in only three months, exceeding the targets for 2016 orders set before the launch by 70%. Launched in about 30 countries, the roll-out to all regions will continue during the first quarter of 2017. In France, it is already the leader in the C-SUV segment over the final three months of the year. The new PEUGEOT 3008 SUV confirms the PEUGEOT brand's move upmarket, with 86% of the orders for the higher trim levels, Allure, GT-Line and GT. PEUGEOT is continuing its internationalisation, with 43% of its worldwide sales generated outside Europe, an increase of four points compared with 2015.

The new PEUGEOT 4008 SUV launched in November 2016 in China and manufactured in the new Chengdu plant dedicated to SUVs achieved 120% of its objectives. In less than six weeks' marketing, it has already recorded 11,500 orders, of which more than 40% were for high-end trims.

The new CITROËN C3, with almost 40,000 sales already since its launch in November, enabled a bound of sales of 63% to be recorded in the fourth quarter, with a very high order mix of almost 50% for the highest trim level and 75% for the two-tone versions. These choices reflect the differentiation and well-being values at the core of the CITROËN positioning.

With a range that has been renewed over 12 months, the DS brand is gradually taking its place in the premium segment. The DS 3 stands among the top three best-selling premium city sedans in Europe, the DS 4 Crossback, the smart adventurer, represents 34% of sales of the DS 4 & DS 4 Crossback duo, and 81% of sales of the DS 5 are the high-end versions.

¹ Including 233,000 vehicles produced in Iran under a Peugeot licence in 2016

Furthermore, the Group is extending its product offensive to the light commercial vehicle segment, with the launch of seven new versions of the PEUGEOT Expert and CITROËN Jumpy in 2016 including the launch of the PEUGEOT Traveller and CITROËN SpaceTourer PC versions.

In Europe, the Group's sales were 1,930,000 vehicles and grew by 3.6% in 2016. The PEUGEOT brand, with a 4.4% increase in sales, is maintaining this growth, due in particular to the PEUGEOT 2008 SUV (+ 16% and sales of 184,200), which stands in second place in its segment, the PEUGEOT Partner (+ 8% and sales of 114,200) and the PEUGEOT 208, the brand's best-seller, driven by the success of its mid-life (+ 8% and sales of 274,000). The picture is similar for CITROËN which, with growth of 4.3%, recorded its best sales volume for five years (762,000 units). In addition to launches during the year (E-Mehari, new Jumpy, SpaceTourer, new C3), the brand's momentum was sustained in particular by the C4 Picasso, the benchmark in people carriers, renewed in September (sales of 109,000) and also by the confirmed success of the Berlingo LCV, the second best-selling small van in Europe. The DS brand continues to develop its dedicated network with 112 DS Stores and DS Salons, as well as the first DS Urban Store, located in the heart of the prestigious Westfield shopping centre in London, inaugurated on 1 December 2016.

In China and South-East Asia, in a fiercely competitive context, the Group generated 618,000 sales. In December, DONGFENG PEUGEOT achieved its historic best monthly performance in China with 43,800 deliveries to customers, mainly due to the success of the PEUGEOT 4008 SUV.

The CITROËN C3-XR SUV confirmed its success with more than 73,000 sales, an increase of 10.5%, which made it the second-best selling DONGFENG CITROËN, behind the C-Elysée (87,000 sales). Orders for the new CITROEN C6 large sedan launched at the end of the year have already reached 4,000, of which nearly 75% are for high-end engines and trims.

With 109 DS Stores, China is the second-largest market for the DS brand, which generated one in every five sales, of which 60% of volumes was for the DS 6 SUV.

On the fast-growing markets of South-East Asia, the PEUGEOT brand recorded growth of 72% in the Philippines and 40% in Singapore. The CITROËN brand continued to grow in South-East Asia, especially in Singapore with the success of the C4 Picasso.

In the Middle-East and Africa region, the PSA Group doubled its sales in 2016 with 383,500 vehicles². In less than a year, the Group's return to Iran took firm shape with the signature of two joint venture agreements: PEUGEOT with Iran Khodro, the brand's historic partner, and CITROEN with SAIPA. Launched at the start of 2016 in partnership with the Iranian group Arian Motor, DS opened its first DS Store in Teheran and markets the DS 5, DS 5LS and DS 6.

² Including 233,000 vehicles produced in Iran under a Peugeot licence in 2016

In Latin America, the Group's sales grew by 17.1%, with 183,900 vehicles sold. The Group's market shares increased in Argentina (+ 1.6 points) and in Chile (+ 1.3 points), where sales were up 32%. With an overall increase of 23.6%, PEUGEOT sales are growing very sharply, in particular in Argentina (+ 39%), notably with the success, from its launch, of the PEUGEOT 2008 SUV (almost 10,000 sales), in Chile (+ 32%) and in Brazil (+ 7%). CITROËN sales grew by 6.3%, particularly due to the C3 Aircross (+ 78%). DS occupies fourth place in the Argentinian premium vehicle market.

In Eurasia, the economic climate is still very weak, particularly in Russia, and the PSA Group's sales fell by 12.6% to 10,500 units in a market that declined by 12.5%. In Ukraine, in a dynamic market (+ 37.4%), the Group's sales grew by 43%. The Group has extended its geographic presence in the region with the commercial launch of its three brands in Georgia.

In the India-Pacific region, following growth of 3.3% in Japan in 2015, the Group saw a rapid increase in its Japanese sales with a rise of 20.6%, making this its best result here since 2007. The PEUGEOT brand made a significant contribution to this performance (+27%), driven in particular by the excellent results for the PEUGEOT 2008 SUV (+ 63%), the 208 (+ 46%) and the 308 (+ 24%). The introduction of the BlueHDi technology in July made it possible to round out the energy offer and will have partially contributed to supporting this growth. CITROËN sales grew by 7.5% across the whole region, mainly due to the launch of the C4 Cactus at the end of the year in Japan and Korea. Officially launched at the end of 2015 in Japan, sales of the DS brand increased by 30% under the effect of major operations such as the first DS WEEK in Tokyo and the launch of a number of limited editions.

Carlos Tavares, Chairman of the Managing Board: "The increase in our sales for the third consecutive year, even though the product offensive of our Push to Pass plan is in its early stages, proves the relevance of our Core Model Strategy. The success of our latest launches is proof that the value-creating growth is the result of the excellence of our products and a virtuous commercial policy".

About PSA Group

With sales and revenue of €54 billion in 2015, the PSA Group designs unique automotive experiences and delivers mobility solutions that provide freedom and enjoyment to customers around the world. The Group leverages the models from its three brands, Peugeot, Citroën and DS, as well as a wide array of mobility and smart services from its Free2Move brand, to meet the evolving needs and expectations of automobile users. PSA is the European leader in terms of CO₂ emissions, with average emissions of 104.4 grams of CO₂ per kilometre in 2015, and an early innovator in the field of autonomous and connected cars, with 1.8 million such vehicles worldwide. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia. Find out more at groupe-psa.com/en.

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