Peugeot says it will drop all base model vehicles from its range as it focuses on the Australian love affair with premium European vehicles, as reflected in sales figures across the industry.
The company very recently repositioned its pricing strategy to be sharper and more in-line with competitors. However, according to Nick Senior, Asia Pacific boss of Peugeot and Citroen distributor Inchcape, the brand will now offer better value than ever before – but it will not be focused on price alone.
“Our go-to strategy is to market brands that represent true value for money in the premium car segment,” Senior said, talking with media at the Australian launch of the new Peugeot 3008.
“Lets make it clear, we will not be the cheapest in the market. Nor should we be. Indeed, we have already taken a deliberate strategy to exclude all base models in the line-up, as Australians have moved more and more in the last three years towards ‘premiumisation’, and the level of interest and percentage of sales in base models has dropped accordingly.”
Senior said that while base models represented around 23 percent of the market share in any given model three-to-four years ago, that figure has now dropped to just 10 per cent, which has been a consequence of advertising laws around drive-away pricing.
Above: the big new 5008 will join the newly launched 3008, later this year.
“Entry-level pricing advantage has largely disappeared due to the need to advertise drive-away pricing. [Consequently] the percentage of higher spec vehicles has jumped. Australians are shopping more and more for value-for-money rather than price.”
This strategy to move into more premium offerings aligns well with the French brand’s own premium extension offerings that start with the inclusion of the GT Line level variants that now run across the brand’s entire model line up.
“This strategy has already seen considerable success in key markets.”
Peugeot will launch the 3008 SUV this month, followed by the updated 308 in September before the arrival of the seven-seater 5008 at the very end of the year. Watch for our Australian first-drive review to come soon, and read our international drive below.