Peugeot to continue in Australia despite major business shakeup

The future of Peugeot in Australia is uncertain, following this week’s announcement Inchcape will end its long-running distribution partnership with the French marque. In a statement issued today, Inchcape announced it would hand the brand over to Stellantis following a transition period.

It comes after years of slow sales for the French brand, which is down more than 32 per cent this year-to-date and on track to sell fewer than 1000 units Down Under this year.

Up until 2013, Peugeot consistently shifted more than 5000 units each year; raking in as many as 8807 sales in 2007 – around half of which came from its 307 small car.

According to Inchcape, the move forms part of its regular portfolio review process.

“As part of Inchcape’s standard approach to portfolio management, we continuously review our partnerships to ensure we have the right portfolio of brands for our business, aligned with our strategic growth objectives,” it said in a statement.

“Inchcape Australia and Stellantis have mutually agreed to end their distribution partnership for Peugeot in Australia, with the final date to be confirmed following a transition period.”

Despite Inchcape’s withdrawal, Stellantis has stressed the Peugeot brand is not leaving Australia.

“Peugeot has a strong future in Australia, supported by a robust product pipeline and a clear long-term strategy,” a spokesperson for Stellantis Australia said.

“We intend to maintain continuity of distribution in Australia and will provide updates as arrangements progress.

“We remain committed to our customers and partners throughout this period and are confident in the brand’s long-term prospects in the Australian market.”

Inchcape says it will continue supporting customers with warranty coverage, servicing, genuine parts supply, recalls and diagnostic updates during the undefined transition period.

Stellantis has not yet revealed if it will take over Peugeot’s local distribution itself, alongside Jeep, Alfa Romeo, Fiat and Leapmotor, or hand it over to another third-party distributor such as Ateco (RAM, Maserati).

The news comes a few years after Citroen announced its exit from the Aussie market – it too, facing dwindling sales amid a slew of more affordable entrants.

For now, it’s business as usual for Peugeot buyers and owners, with no immediate change to sales, servicing and warranty support.

The bigger question is what the future holds for Peugeot in Australia, despite Stellantis’ insistence the brand is future-proofed locally.