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A few days ago, the PSA Group released the latest performance report, with operating income of 15.6 billion euros in the third quarter of this year, an increase of 1% over the same period last year. Among them, the group's automotive business unit achieved operating income of 11.8 billion euros in the third quarter, an increase of 0.1% over the same period last year.

In terms of sales, PSA sales totaled 674000 in the third quarter, down 4 per cent from a year earlier. Sales fell in all major markets, with sales in Europe, the largest, falling 2.7 per cent to 569000, while sales in China and Southeast Asia fell 40.1 per cent to 29000.

PSA said the group still achieved positive growth in the third quarter despite declining car sales and currency fluctuations, mainly due to improved product mix due to demand for its higher-margin SUV models such as the Citroen C5 Aircross.

But PSA expects all of its major car markets to shrink this year, including Russia, which had expected positive growth in July. Specifically, the Chinese market (passenger cars only, excluding imports) fell the most, with an expected decline of 7 per cent.

Generally speaking, the introduction of the continuous decline in the domestic market can not bring more performance profits to PSA. PSA Group's revenue depends entirely on the local European market, but PSA still does not intend to give up the Chinese market and launched a revival "yuan" plan.

According to the plan, through the efforts of Peiyuan, Guyuan and Tuoyuan, Shenlong's goal is to sell 400000 vehicles as a whole, and will launch more high-quality models suitable for the Chinese market and meet Chinese consumers. In the next three years, DPCA will launch 14 new models, and each brand will have new models every year.

However, in fact, the two brands now sold only 10, 000 units in September, down 42.9% from a year earlier, and only 91000 units in the first three quarters, down 55.5% from a year earlier. According to the target set at the beginning of this year, DPCA is expected to sell 235000 units in 2019, but now that three quarters have passed, its cumulative sales are only 91000, accounting for less than 40%.

In the face of the decline in sales, since 2018, DPCA brand dealers have reported the news of withdrawing from the network. Since then, in Beijing, Zhuhai, Shanghai, Fuzhou and other places, the brand's 4S stores have been closed or resold other brand products, Dragon Motor has since fallen into the abyss.

In order to adhere to the Chinese market, Shenlong has begun to implement the "yuan" revival plan, in which the implementation of dual-brand coordination in sales channels, so as to enhance the health and vitality of the network, while the dual-brand positioning is clearer, with their own characteristics. Shenlong plans to build 60-80 such "dual-brand collaborative outlets" across the country this year.

In early October, the country's first dual-brand 4S store officially opened in Jiaozuo, Henan Province. the store can sell Dongfeng Peugeot and Dongfeng Citroen models at the same time, but the two brand showrooms have their own entrances and exits to remain relatively independent. DPCA said that this is to show the different positioning and culture of the two brands.

However, it is not realistic to put aside the fact that 400000 of sales are being sold. Slow product update? Then change it, push 14 models for 3 years, and ensure that new products will be produced every year; the appearance does not conform to the national conditions? Also change, adhere to the full combination of legal design genes, European advanced technology and the needs of Chinese users. But this is not the most fundamental reason. Compared with German cars and Japanese cars, French cars have lagged behind a whole generation in terms of technology and configuration. If you want to compete with independent brands, but the price does not give full sincerity, with the passage of time, French brand models have been excluded in the market, which will only be a vicious circle.

If PSA is hoping to reverse the situation through the new energy plan, the planned new energy models are all oil-to-electricity products, and there is no independent platform, which is in fact the fundamental factor restricting its electrified development. If PSA wants to make a difference in the new energy sector, it still needs to know the problems and causes of the fuel car market in China, otherwise the plan will also fail.

Now that the global car market is facing a downward trend, all car companies will face greater challenges, especially this year, when even Volkswagen faces a decline in sales, not to mention French brands, which have the lowest share of the domestic market. Once as an early entry into the domestic Shenlong Motor, did not pay attention to the domestic market, reduced to the end now can only say its own reasons. Nowadays, consumers have more and more choices, and word-of-mouth is the only standard that allows car companies to stick to it.

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