Big discounts up to $30,000 on Peugeot, Citroen cars amid slow sales

Peugeot and Citroen have embarked on a frenzy of discounts in Australia – offering savings of up to $30,000, or 34 per cent – amid combined sales down 72 per cent in 15 years.

Nearly three-quarters of the Peugeot and Citroen line-ups are on special – including some models launched just three months ago – from plug-in hybrid hatchbacks to diesel delivery vans.

The average discount is $10,000, ranging from about $500 on a Peugeot 308 hatch, to approximately $30,000 on the Peugeot 508 sedan.

MORE: Peugeot sales have halved in a decade, but the French brand says it’s here to stay

Sales of Peugeot cars in Australia have been in decline for 12 of the past 15 years, and over the past five years, deliveries have all but flat-lined in a new-car market up close to 15 per cent.

Meanwhile, Citroen sales have tumbled by 94 per cent from a peak of 3803 in 2007 – to just 228 last year – while its line-up has halved.

The French car makers, like many other brands, have increased prices significantly over the past five years with the arrival of new models – and rises attributed to economic pressures related to the COVID-19 pandemic.

In recent years Peugeot and Citroen have axed entry-level models to focus on better-equipped cars with higher prices – and larger profit margins.

A decade ago, the cheapest automatic Peugeot 308 hatch was priced from $23,990 plus on-road costs – with steel wheels, cloth seats, and no touchscreen – with the flagship diesel automatic hatch listed for $42,990.

In 2024, the most affordable model is $43,990 plus on-road costs – now a high-specification GT model – and the top-of-the-range, non-hybrid hatch is $48,990.

The latest drive-away special offers the 308 GT for $46,990 drive-away nationwide – an average estimated saving of $500, though the exact reduction differs by state and territory, and could be no different to the regular on-road price in parts of Australia.

The petrol 308 is the outlier, as every other discounted model in the Peugeot and Citroen range – including the 308 plug-in hybrid – has had an estimated average price reduction of at least $4000.

Many were in place before the end of the financial year, but have been extended and set to expire at the end of this month – unless they are extended again.

Among the offers is the Peugeot 2008 small SUV, which is an estimated $6000 to $7150 off – on average – just three months after an updated model arrived.

The Citroen C5 Aircross Sport family SUV is now $45,990 drive-away – down about $14,000 – and is cheaper than a base-model Toyota RAV4 Hybrid in NSW ($46,656 drive-away, according to the Toyota website).

The entry-level Peugeot 3008 Allure is the same price – $45,990 drive-away – and Peugeot is throwing in the $5990 Luxury Pack for free, with nappa leather seats and a sunroof, bringing the saving to $14,500 in rounded, average terms.

The largest discount of all has been applied to the Peugeot 508 Fastback plug-in hybrid sedan, which is up to $30,000 off for older 2022-plate, but still brand-new stock ($57,990 drive-away) – or $59,990 for 2023 and 2024-plated cars.

The offer prices represent a significant saving on the regular RRP of $81,610 plus on-road costs, which equated to an estimated average drive-away price of about $88,000.

It is even about $8000 to $10,000 cheaper than the non-hybrid 508 axed last year, which accounted for the vast majority of sales – and only a few thousand dollars more than a top-of-the-range Toyota Camry Hybrid.

Peugeot reported 156 deliveries of the 508 in 2023 – up 20 per cent on the prior year – though 34 per cent, or 53 cars went to rental fleets.

The French car maker also offered a $39,990 drive-away offer on the e-2008 small electric SUV in May – a saving of about $25,000 – but it sold out three days after receiving media attention.

While sales are down, the local distributor of Peugeot and Citroen vehicles has said on multiple occasions in recent years the brands have no plans to depart the market – and are in Australia for the long haul.

"[Peugeot] is here to stay," then-boss of Peugeot Australia, Kate Gillis, told Drive last year. Ms Gillis has now moved into a more senior role at Peugeot importer Inchcape.

"We are 100 per cent committed. We've got great customers and very loyal customers. They’re fantastic advocates … and our job is to bring that new generation of advocates to life," she said.

Citroen is in a quiet period for new-model launches – aside from a plug-in hybrid C5 X due later this year – but Peugeot is preparing for no fewer than six new cars, all powered by electricity, within the next 18 months.

They include a new Peugeot 3008 mid-size SUV – initially as a coupe-styled electric vehicle, to go head-to-head with the Tesla Model Y – and the return of the 208 city hatch, also as an electric car.

It follows the recent launch of the high-riding 408 plug-in hybrid sedan, and updates to the 2008 SUV and Partner city van.

Disclaimer: The pre-offer drive-away prices quoted above are estimates calculated by Drive based on the RRPs and drive-away prices of other Peugeot and Citroen models which are not on special, as listed on each manufacturer's website.

They are intended to be average prices nationwide, and similar to NSW and Victorian drive-away prices – but the exact costs will vary by state and territory due to differences in stamp duty and registration costs in each region. As a guide, the ACT will offer the cheapest prices, while WA will be most expensive.

Care has been taken to ensure the prices listed are correct, however be sure to check with your local dealer – or the Peugeot/Citroen websites – before purchasing in case the drive-away offers have changed or expired.