DS brand loses sales in first half, but bouyed by massive increases in China.

Vehicle sales at Citroen’s upscale DS line, which became a stand-alone brand on June 1, fell during the first half, hit by an aging product lineup and tougher competition from refreshed rivals such as Mini.

DS global sales fell 10 percent to 63,789 through June. The biggest decline was in Europe, where volume dropped 21 percent to 50,056 units. A bright spot was China where first-half DS sales were 10,482 units compared with 957 during the prior-year period.

PSA/Peugeot-Citroen launched the DS line in 2010 to help the automaker boost earnings by attracting customers willing to spend more money for high-spec models.

The brand has expanded from the initial DS 3 and DS 3 Cabrio subcompacts to offer the DS 4, DS 5 and DS 5LS compacts.

The next addition will be the China-only 6WR SUV, which was unveiled at the Beijing auto show in April.

Expanding DS sales is a crucial part of PSA CEO Carlos Tavares' Back to the Race turnaround plan for the automaker. He named PSA's former director of group strategy, Yves Bonnefont, to the newly created position of CEO of DS in June. Bonnefont is tasked with elevating DS from a tiny-but-successful division of Citroen to a global powerhouse.

Tough market

Citroen said first-half DS sales in Europe were hit by a contracting market in the segment where the brand competes, especially in France.

"DS is moving forward with the launch of a new front light signature for DS 3 and DS 3 Cabrio, new limited editions, new engines and its first SUV for China in September," Citroen said in a July 21 statement.

IHS Automotive analyst Ian Fletcher said Tavares’ anti-discount strategy and an aging lineup likely hurt DS sales. "The lynchpin DS 3 is five years old now and is a very familiar sight," Fletcher said. "It is facing vehicles that are benefiting from updates, such as the refreshed Mini, or are being heavily pushed by rivals, such as the new version of the Fiat 500."

The DS 3 launched the DS line but is now aging.

Analysts expect the appointment of Bonnefont as CEO of DS to bring benefits.

"The new CEO could help if he understands that the success of DS will come if the premium mentality is applied on DS," said Jamel Taganza from analyst firm Inovev. “It means, in addition to becoming a stand-alone brand, that DS must also have an independent technical center, for example."

IHS Automotive’s Fletcher agreed that making DS a stand-alone brand was a good move. "The launch of the DS nameplate under Citroen enabled PSA to dip a toe in to the premium sector, but ultimately they were still Citroen products directed by requirements of that brand," Fletcher said. "By spinning DS off and appointing its own CEO, PSA gives it a greater singularity of concept in the pursuit of a widening its customer base in the premium sector."

PSA expects China to be a major market for DS, helped by ever-increasing demand for premium Western products. PSA opened a joint venture plant with Changan Auto in Shenzhen, China, in September to build the DS 5. Inovev forecasts that the factory's annual production will rise to 200,000 units by 2017 from 50,000 in 2014 and 100,000 in 2015.

Bruce Gain

DS celebrates two massively successful years in China with launch of new concept.

• DS marks two years in China with a special event at DS World in Shanghai
• Celebrations include delivery of the 10,000th DS in the Chinese market, the launch of a new DS Club & the world-exclusive reveal of DS 6WR’s interior

DS has just celebrated two years in China – the world’s biggest car market – with a special event at DS World in Shanghai for customers, distributors, journalists, partners and brand representatives.

The event saw the delivery of a DS 5LS to the 10,000^th DS customer, the launch of a new DS Club and the reveal of the DS 6WR’s interior. DS 6WR is the brand’s first premium SUV, which will launch September 2014.

Yves Bonnefont, Chief Executive Officer of the DS brand worldwide, commented; “DS now has a network of 60 points of sale in China. With the launch of the DS 6WR in the autumn, it now markets three locally-produced models – a feat achieved in just one year. As DS sets out to become a premium brand on a worldwide scale, the results obtained in two years in China, the world’s number-one automotive market, encourage us in the pursuit of our business offensive.”

DS IN CHINA: SUSTAINED GROWTH

The DS brand was launched in Beijing on 28 June 2012 with a range consisting of imported DS 5 and DS 4 models. This was followed by the introduction of DS 3 in September 2012. The first dedicated DS network sales point was a DS Store in Nanjing, which opened in June 2012, and there are now 60 DS Stores* in existence. DS has since opened a DS World – the brand’s first flagship venue – located in Shanghai on the Nanjing Road and the objective is to cover the country’s 70 largest cities with 100 sales points by the end of 2014.

DS now markets a range of four models including two cars that are produced locally at the Shenzhen plant. The two locally manufactured cars are DS 5, launched in September 2013, and DS 5LS, introduced in March 2014.

10,000 DS CUSTOMERS IN CHINA & LAUNCH OF DS CLUB

A 29-year-old woman, Guan Zhenyan, was named as the 10,000^th DS customer in China and she was presented with the keys to her brand-new DS 5LS by Arnaud Ribault, Managing Director of DS in China, at the anniversary ceremony at the DS World.

The ceremony was also the platform for the launch of a new DS Club, which is a web community for customers to share conversations and for the brand to provide answers to any product, service or other DS specific questions that customers may have. DS Club will soon bring community members exclusive services, including DS-themed travel promotions, with one themed around ‘Parisian Luxury’.

DS 6WR: INTERIOR REVEALED OF FIFTH DS MODEL

The highlight of the anniversary ceremony was the world-exclusive reveal of the interior of DS 6WR, the brand’s first premium SUV. Like the body styling, the cabin of the DS 6WR combines robust SUV characteristics and refinement. It has been designed to enhance the comfort and well-being of the driver and passengers – introducing the sophistication of a saloon to the world of the SUV. The DS 6WR will be launched in China at the end of September 2014.

*51 dealerships and 9 “City Format” sales annexes.

Latest DS model to preview at Beijing, the all new DS 6WR.

• DS 6WR, an all-new premium SUV, will be unveiled this month’s Beijing Motor Show
• Directly inspired by the Wild Rubis concept, DS 6WR features unique styling & combines SUV versatility with DS sophistication & refinement
• Powered by e-THP 160 & THP 200 engines, with 6-speed automatic transmission

DS is unveiling a sophisticated new SUV at this year’s Beijing Motor Show – DS 6WR – the first SUV for the brand.

Designed in Paris and directly inspired by the Wild Rubis concept car, DS 6WR is a premium SUV and a new approach for DS: rebellious, untamed, yet pure and sophisticated. Following on from DS 5LS, this is the first SUV for the brand and represents the next stage in the development of DS in China and around the world.

The unique body lines combine SUV styling with DS design cues. At 4.55m long, 1.86m wide and 1.61m tall, with a long wheelbase of 2.73m and 19-inch wheels, DS 6WR’s generous dimensions meet the needs of premium SUV buyers in terms of space, versatility and dynamics.

DS 6WR is specified with Grip Control – for optimised traction on all types of terrain – without the need for a four-wheel drive system. This benefits both fuel consumption and CO₂ emissions. The e-THP 160 and THP 200 powerplants are mated to a 6-speed automatic gearbox and feature sequential direct injection with a high-pressure pump and a twin scroll type turbocharger.

A truly modern SUV, DS 6WR’s body is wide and low with unique, charismatic styling. There is a chrome-finished side signature with aluminium bars that accentuate the impression of height and sculpted rear wings. The new front end identity, inaugurated by DS 5LS, features ‘DS Wings’, a new grille design that takes its name from the two chrome-finished wings connecting it to the headlamps. The incisive light signature features Xenon technology and DRLs that appear in a tuning-fork layout.

At the rear, the lights appear integrated into the wraparound tailgate. The glass is set in chrome, further underlining the 3D design of the lights. To complete the rear signature, DS initials are embossed on the side of each light cluster. The sculpted style of the wraparound tailgate is underlined at the base with a chrome finish and a twin exhaust.

Following DS5 in September 2013 and DS 5LS, which was launched at the end of March this year, DS 6WR will be the third DS model to be built in China at the Shenzhen site. DS 6WR will be introduced by end of the year in China in the first instance. Another locally built model will also be unveiled in the coming months. The development of DS is underpinned by an expanding network with 56 ‘DS Stores’ in the country’s biggest cities