Peugeot’s Australian Empire Crumbles: Iconic Carmaker’s Future Under Threat as Sales Plummet to Historic Lows
- Peugeot’s Australian importer, Inchcape, to surrender rights to sell the brand’s cars from 2027 due to dire sales
- Annual sales plummet to record lows, with just 373 cars delivered in the first five months of the year
- French car industry in crisis as sales nearly halve in Australia since 2019, while Chinese imports skyrocket
- Stellantis, Peugeot’s parent company, vows to maintain brand’s presence in Australia despite Inchcape’s exit
The Australian motoring landscape is set to undergo a seismic shift as Peugeot, one of the world’s oldest and most iconic carmakers, prepares to scale back its operations in the country.
The brand’s Australian importer, Inchcape, has confirmed it will surrender its rights to sell Peugeot cars from 2027, marking the end of an era for the French marque.
The decision comes as Peugeot’s sales in Australia continue to plummet, with just 373 cars delivered in the first five months of the year. This represents a staggering 35 per cent decline compared to the brand’s already record-low sales in 2025.
If this trend continues, Peugeot’s annual sales are on track to slip below 1000 for the first time in decades, a far cry from its heyday in 2005 when it sold 7025 cars.
The decline of Peugeot in Australia is symptomatic of a broader crisis afflicting the French car industry. Sales of French cars have nearly halved in Australia since 2019, with just 4000 cars sold last year.
In contrast, Chinese imports have skyrocketed, increasing tenfold to become the number one supplier of cars to Australia, with over 220,000 sales in 2025. Inchcape’s decision to abandon Peugeot is part of a broader shift towards Chinese brands.
The company has invested heavily in Chinese marques Deepal and Foton, while turning its back on the struggling French industry.
This move is mirrored by Stellantis, Peugeot’s parent company, which has poured investment into Chinese car maker Leapmotor to give it a viable alternative to cheap new models emerging from China.
However, despite Inchcape’s exit, Stellantis remains committed to maintaining Peugeot’s presence in Australia. The company has confirmed it will work with China’s Dongfeng on a joint venture to produce cut-price models with Jeep and Peugeot badges.
While details on the future arrangement are unclear, Stellantis has vowed to maintain continuity of distribution in Australia and provide updates as arrangements progress.
Analysis: What This Means for AustraliaThe decline of Peugeot in Australia has significant implications for the country’s motoring landscape.
With Chinese brands increasingly dominating the market, there are concerns about the impact on local jobs and the economy. The shift towards cheap, imported models also raises questions about safety and quality standards.
Law enforcement insiders warn that the influx of cheap Chinese imports could lead to an increase in dodgy dealerships and unscrupulous sales practices. “We’re already seeing a rise in complaints about faulty vehicles and unresponsive manufacturers,” says one industry expert.
“As the market becomes increasingly flooded with cheap imports, we can expect to see more problems down the track.”
Moreover, the decline of Peugeot in Australia is a wake-up call for the country’s automotive industry.
As the market continues to evolve, manufacturers must adapt to changing consumer demands and tastes. Failure to do so could result in further job losses and economic contraction.
In the short term, Peugeot’s exit is likely to have a significant impact on the brand’s existing customers.
While Inchcape has confirmed it will continue to support existing stock, warranties, and servicing during the handover, there are concerns about the long-term viability of the brand in Australia.
As the Australian motoring landscape continues to shift, one thing is clear: the days of Peugeot’s dominance are behind us. Whether the brand can reinvent itself and reclaim its place in the market remains to be seen.
The Australian motoring landscape is set to undergo a seismic shift as Peugeot, one of the world’s oldest and most iconic carmakers, prepares to scale back its operations in the country. The brand’s Australian importer, Inchcape, has confirmed it will surrender its rights to sell Peugeot cars from 2027, marking the end of an era for the French marque.
The decision comes as Peugeot’s sales in Australia continue to plummet, with just 373 cars delivered in the first five months of the year. This represents a staggering 35 per cent decline compared to the brand’s already record-low sales in 2025. If this trend continues, Peugeot’s annual sales are on track to slip below 1000 for the first time in decades, a far cry from its heyday in 2005 when it sold 7025 cars.
The decline of Peugeot in Australia is symptomatic of a broader crisis afflicting the French car industry. Sales of French cars have nearly halved in Australia since 2019, with just 4000 cars sold last year. In contrast, Chinese imports have skyrocketed, increasing tenfold to become the number one supplier of cars to Australia, with over 220,000 sales in 2025.
Inchcape’s decision to abandon Peugeot is part of a broader shift towards Chinese brands. The company has invested heavily in Chinese marques Deepal and Foton, while turning its back on the struggling French industry. This move is mirrored by Stellantis, Peugeot’s parent company, which has poured investment into Chinese car maker Leapmotor to give it a viable alternative to cheap new models emerging from China.
However, despite Inchcape’s exit, Stellantis remains committed to maintaining Peugeot’s presence in Australia. The company has confirmed it will work with China’s Dongfeng on a joint venture to produce cut-price models with Jeep and Peugeot badges. While details on the future arrangement are unclear, Stellantis has vowed to maintain continuity of distribution in Australia and provide updates as arrangements progress.
The decline of Peugeot in Australia has significant implications for the country’s motoring landscape. With Chinese brands increasingly dominating the market, there are concerns about the impact on local jobs and the economy. The shift towards cheap, imported models also raises questions about safety and quality standards.
Law enforcement insiders warn that the influx of cheap Chinese imports could lead to an increase in dodgy dealerships and unscrupulous sales practices. “We’re already seeing a rise in complaints about faulty vehicles and unresponsive manufacturers,” says one industry expert. “As the market becomes increasingly flooded with cheap imports, we can expect to see more problems down the track.”
Moreover, the decline of Peugeot in Australia is a wake-up call for the country’s automotive industry. As the market continues to evolve, manufacturers must adapt to changing consumer demands and tastes. Failure to do so could result in further job losses and economic contraction.
In the short term, Peugeot’s exit is likely to have a significant impact on the brand’s existing customers. While Inchcape has confirmed it will continue to support existing stock, warranties, and servicing during the handover, there are concerns about the long-term viability of the brand in Australia.
As the Australian motoring landscape continues to shift, one thing is clear: the days of Peugeot’s dominance are behind us. Whether the brand can reinvent itself and reclaim its place in the market remains to be seen.
