What development plans are possible for the DS brand globally?
- Sales of the DS brand (PSA group) have further declined in 2014 (109 000 global sales, decreasing 6%) after having already reduced in 2013 (116 000 global sales against 117 000 in 2012). Over the first 6 months of 2015, sales reached 55 000 units, which bodes for 106 000 sales for the entire year 2015.
- The French Premium brand saw development and expansion issues in the first years of its launch (for better understanding, Inovev includes the Citroen DS3, DS4 and DS5 under the DS brand since 2010).
- The split of DS sales globally for 2014 is: 84 000 units in Europe (77% of sales), 23 000 in China (21% of sales) and 2 000 in other regions (2% of sales). In the first half of 2015 sales seem to be better spread out between the different markets, Europe accounting for 73% of sales and China accounting for 25%.
- By model, the DS3 represented 49% of global sales, the DS4 represented 18%, the DS5 represented 30% and the DS6 only 3%.In the first half of 2015 these shares changed slightly: DS3 represents 48% of sales, the DS4 17%, the DS5 16% and the DS6 represents 19%... Thanks to China. The DS6 is in fact only sold in China (it is also the only SUV of the brand) where it is moderately successful. Having said this, global sales volumes of the DS brand are closer to those of Jaguar (75 000 units) and Lancia (75 000 units) than those of BMW (1,8 million units), Audi (1,7 million units) or Mercedes (1,5 million units).
- What development plans are possible for the DS brand globally?
1.Renew the current range . The three models currently sold in Europe were launched in 2009 (DS3), 2010 (DS4) and 2011 (DS5) which means that at the latest these vehicle should be replaced is respectively 2015, 2016 and 2017. Unfortunately, the DS4 and DS5 have just had a facelift, which means that they won’t be replaced for another couple of years. The DS3 will have to be replaced by late 2016.
2.Harmonise the range. China is already marketing a DS5 Saloon which is different to the European DS5 and a SUV DS6. These models should be marketed in Europe and other models (especially the SUV) should come and extend the range. Unfortunately the DS product plan has nothing planned until 2016 and very few models before 2018.
3.It is true that it took Audi 30 years before becoming a renowned Premium brand, but for the DS brand the next couple of years will be tough, since it will have make do with its current models. The DS3 will not be able to support the brand single handily. Unless DS comes up with a new strategy like that of Mini by building a whole new range based on the DS3, which seems like a high risk plan.
4.Target other markets. Even if it is hypothetical to target the US, other markets are potentially interesting for a premium brand. The Chinese market does not guarantee a double-digit growth in the coming years and the European market is very long to enter for a new brand.
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