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Citroën Bids Farewell to Australian Market Amid Declining Sales

Citroën, the French automotive brand with a century-long history, bid farewell to the Australian market after facing a prolonged period of dwindling sales. The decision to cease new vehicle sales in Australia was announced in November, marking the end of an era for the brand in the country. While the existing service centers will continue operations for now, the future remains uncertain.

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The general manager of Citroën Australia, David Owen, acknowledged the brand’s rich history in the Australian market but cited the evolving industry dynamics and shifting consumer preferences as key factors behind the decision. With only 87 vehicles registered in the first half of 2024, a significant decline from previous years, it became evident that Citroën was struggling to resonate with Australian buyers.

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The downward trend in sales was accompanied by substantial price cuts on existing stock, signaling a challenging market position for the brand. Despite offering a limited range of passenger cars in Australia, including models like the C3 hatch and the C5 Aircross SUV, Citroën failed to capture a significant market share.

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Having initially entered the Australian market shortly after its inception, Citroën even manufactured cars locally, with the ID19 being assembled in Melbourne. The cost-effective approach of the ID19 hinted at a lesson that the brand might have overlooked in its later endeavours – the importance of competitive pricing and market positioning.

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Industry experts point out that Citroën’s pricing strategy and product offerings failed to align with the demands of Australian consumers, leading to a gradual decline in sales over the years. The brand’s inability to adapt to changing market dynamics and meet consumer expectations ultimately contributed to its departure from the Australian automotive landscape.

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While Citroën’s exit may not evoke strong sentiments among all consumers, there is a glimmer of hope for a potential return in the future. The brand’s historical performance in Australia, as reflected in sales figures over the years, underscores the challenges it faced in a competitive market environment.

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The closure of Citroën’s operations in Australia marks the end of a chapter in the country’s automotive history, highlighting the complexities and uncertainties faced by international brands in local markets. As the industry continues to evolve, the departure of Citroën serves as a reminder of the importance of market adaptation and consumer-centric strategies for sustained success.

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