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Citroen: High hopes for luxury DS brand

Updated: 2012-07-02 16:39

By Gong Zhengzheng (China Daily)

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Citroen: High hopes for luxury DS brand

The DS5 on display at the 2012 Beijing Auto Show. Now with a low profile in China, the French brand is opting for local production. Jason Lee / Reuters

Citroen's high-end marque DS might be obscure to Chinese consumers, but the French carmaker aims to change that perception and rapidly expand sales in China by producing a slew of models locally.

Citroen CEO Frederic Banzet said last week that he expects annual sales of the DS to hit 200,000 units in China in a few years when it has four locally made models.

That is a big ambition considering DS moved only 110,000 cars last year globally.

Analysts said it will be difficult for the brand to reach its goal in China because it currently has almost no brand appeal, although the nation's premium car market still has huge growth potential.

Citroen will start to assemble a DS5 crossover next year at its parent PSA Peugeot Citroen's joint venture with major Chinese auto group Chang'an Motor Corp in the southern city of Shenzhen. The joint venture is the only manufacturing site for the DS outside France.

Banzet said future lineup for the joint venture includes a mid-sized sedan, large sedan and an SUV.

He expects annual sales of the DS5 to reach 30,000 units initially after it begins local production in China.

DS opened its first China dealership last month in eastern city of Nanjing.

Banzet said he believes China's premium car market will continue to grow steadily over the next decade.

The nation's premium car market is now dominated by three German premium brands - Audi, BMW and Mercedes-Benz - which have had local production underway for years or even decades.

Banzet said the DS will have more than 30 dealerships in China by the end of 2012, a number that will rise to 80 next year and to 200 by 2015.

Citroen launched the DS4 and DS5 last week as imports in China. Both are equipped with a 1.6-liter four-cylinder turbocharged engine. The DS4 retails between 242,800 and 272,800 yuan. The DS5 sells for 298,800 to 348,800 yuan.

"The DS is a French premium brand characterized by unique designs, refinement and comfort. We target the young elite pursuing individuality in China," Banzet said.

gongzhengzheng@chinadaily.com.cn

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