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Peugeot-Citroen (PSA) and Renault are two big French auto giants, which have great influence in the European market, but when they come to the Chinese market, they can only be described as bleak. Sales of PSA and Renault in China continue to decline, and it is a fact that the market share of French car companies is declining. Well, sales plummeted again in May.

Dragon plummeted by more than 60%.

DPCA May sales data show that the total of the two brands is still less than 10, 000, with actual sales of 8698 in May, compared with 26167 in the same period last year, down 66.76% from January to May, down 61% from January to May.

It is more appropriate to describe DPCA as "falling endlessly". After falling by 32% in 2018, it even expanded to 60% in 2019, with dismal sales. As a matter of fact, since the second half of last year, DPCA has carried out a new round of overall reform of the internal organization department, and senior personnel have been adjusted frequently, and all actions have to recover the lost market share. But even if there are new products on the market, the decline in sales is still an indisputable fact, lasting nearly a year of adjustment is not very effective, brands and sales continue to fall into a double trough.

The problems existing in Shenlong have been left behind for too long and have been widely criticized, resulting in today's dilapidated situation, which is due to the market environment and the slow updating of products, but the internal human factors may be the main cause.

PSA believes that the joint venture DPCA has always had two major problems: poor marketing and slow decision-making.

In the impression of most consumers, Peugeot and Citroen brand image is still about 10 years ago, the market competition is fierce, product renewal iteration is so fast, but their image does not seem to have changed. Therefore, PSA plans to make efforts in marketing. On May 9, DPCA held a conference on organizational evolution in the field of marketing, cancelled the marketing headquarters, announced the appointment of new organizations and cadres in the field of marketing, and strengthened the customer-oriented marketing organization and operating mechanism.

In view of the slow decision-making mechanism, DPCA has gradually optimized and reorganized its organizational structure in order to enable the company to quickly adapt to changes in the Chinese market. PSA said that this is not an overnight thing.

PSA has repeatedly stressed that "will never give up the Chinese market", but the reality is that consumers have given up on you, how to restore consumer confidence in the brand, there is still a long way to go.

Dongfeng Renault fell 80%.

When we thought PSA Group, which represents French car companies, was already miserable, Renault Group, France's second largest car group, fell more than PSA. Dongfeng Renault sold 1008 vehicles in May, down 80 per cent from a year earlier to 7398 vehicles from January to May, down 77.2 per cent from a year earlier.

Dongfeng Renault, founded in December 2013, is a joint venture vehicle production enterprise established by Dongfeng Automobile Group Co., Ltd. and France Renault according to 50:50 equity proportion on the basis of restructuring Sanjiang Renault Automobile Co., Ltd. Dongfeng Renault vehicle plant, located in Wuhan, is currently in production of only two SUV models that went on sale in 2016, namely Coreja and Coreao. Familiar netizens know that the two domestic SUV of Dongfeng Renault and Dongfeng Nissan are inextricably linked.

Since the launch of domestic models, Dongfeng Renault has had the opportunity to develop rapidly, with sales reaching 36525 units in 2016 and jumping to 72000 units in 2017, reaching an all-time peak. As car sales in China began to decline and the introduction of Renault products was not positive, Dongfeng Renault stalled obviously in the second half of 2018, and sales fell to 50, 000 units that year.

In 2019, Dongfeng Renault fell off a cliff, falling by 91.6% in April and nearly 80% in the previous month. It is saddening that sales have fallen so badly.

Due to the continuous decline in sales, Dongfeng Renault dealers are also having a hard time, increasing operating pressure, and the news of withdrawing from the net continues to flow out. According to the monthly dealer inventory level report of the China Automobile Circulation Association, the inventory depth of Dongfeng Renault dealers is often more than 2 months, which remains above the warning line.

In the face of the declining Chinese market, Renault quickly changed its coach. On April 1 this year, Dongfeng Renault hired GE Shuwen, who once worked in Audi China, as president of Dongfeng Renault Motor Co., Ltd. and vice president of strategic coordination of Renault Group in China, seeking to reverse the declining performance of the Chinese market.

However, some people in the industry believe that the strength of the brand is not good, the strength of the product is not strong, and the intensity of propaganda is not strong, and only changing leaders is equivalent to "changing the soup without changing the medicine."

Under the stock competition in the Chinese market, legal car companies are facing greater pressure, and the living space is getting narrower and narrower. Now the French car companies routed across the board, falling to a low ebb, there are many factors in this process, some netizens believe that, "this is the result of not trying to make progress, pay a heavy price." If you do not make effective changes, according to this trend, even if you do not delist, you will spoil the remaining price of the brand.

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