“We understand the question, due to the level of competitiveness in the market. But if the question were to come, I don’t think we should consider one single scenario about it. And the reason is simple: premium represents 25% of the volume in Europe and nearly 40% of the profits for a car manufacturer.
“So should we immediately stop a brand bringing profitable results to the company in a premium segment, which is impactful for the car market, with some competitors pushing their premium brands as an asset for the company?”
Peugeot pointed to the upcoming wave of new products as a statement of Stellantis’s commitment to DS’s future – and said this applies similarly in the UK, where the brand has hitherto sold in extremely low volumes, relative to its main competitors.
“We expect to sell the No8, No4 and No7 in the UK, which means that we trust in the future for DS in the UK,” he said. “But of course we also need to provide some volumes.”
Peugeot doesn’t believe “a premium brand is only to be considered through volumes” but said a certain number of cars must be sold to ensure the dealer network remains profitable, so “the coming launches will be key to ensuring the success of DS in the UK”.
Importantly, noted the brand’s UK MD Jules Tilstone: “The UK market is changing, and retailers have told us that the auto-renewal with a German premium brand is not there as it has been in the past.
“The pitch is moving: the market share from the top three German brands is down two and a half points, newcomers are cutting through. So the dynamic is changing in the UK market, and we’re here to take full advantage of that.”
However, Tilstone acknowledged that “we’ve got a job to do” in terms of boosting brand recognition and “we haven’t solved that yet”.
“Getting DS on the shopping list is a job still to be done,” he said, pointing to the No8 as a “catalyst” for achieving that, with the EV’s 466-mile maximum range far outstretching most rivals’.
“Range is king,” he said. “When you’re talking about 466 miles, you can forget about worries over public charging. Suddenly we’ve got a car that you can plug in at home and you never have to go to a fuel station or charging station again.”