Citroën is making a huge bet on its DS premium subbrand in China. With a projected 200.000 cars to be sold through 100 stand-alone DS dealerships by 2015, the investment is enormous and the stakes are high. Crucial to success in the Chinese market is local production, as heavy taxes keep imported models limited to just 10% of the Chinese car market in 2012. This year, Citroën has started production of DS5 in Shenzhen with its Joint Venture partner ChangAn, and two more models will follow.
Citroën dropped the ball in China
The French were one of the first foreign brands that were allowed to sell cars in China in the 1980s, together with VW. But from those early days, both brands have walked different paths, with different results.
Volkswagen has capitalized upon its first-mover advantage to build its brand into the market leader thanks to massive investments in production capacity and a wide range of products from low-end all the way up to premium with sister brand Audi. [Read more…]