Peugeot South Africa (PSA) has big plans to increase sales in South Africa, says PSA MD Francis Harnie, and these may include the semiknockdown assembly of minibus taxis.

The French automaker hopes to increase its local market share to 1%, which will be a 0.3% increase on 2011 figures, and for a 40% jump in sales volumes.

By 2015, PSA would like to see a 2% market share, notes Harnie.

The current South African Peugeot car parc, all imported, is 52 000-vehicles strong.

Harnie says this fleet is largely made up of the smaller cars in the Peugeot range, such as the 206 and 307.

Minibus taxis make up a very small part of this volume, with around 100 vehicles sold into this market last year.

“If we can go into the taxi market in a stronger way, we will do it. If we can do local semiknockdown assembly, why not? But it is still early days,” warns Harnie.

Government is in the process of rolling out a support programme for taxi assembly in South Africa.

One way in which PSA hopes to lure buyers to its showroom floors is by offering a new five-year/ 100 000 km maintenance, service, roadside assistance and warranty plan as standard with every new passenger car sold.

This will be a significant step in restoring customers’ faith in the Peugeot brand, which is fighting the perception that it offers expensive parts and services, says PSA marketing GM Clara Metivier-Beukes.

“This will be our unique selling point. This means that customers will not have to open their wallets in a Peugeot dealership for five years,” notes Harnie. “There is no ‘if’, no asterisk. It’s all in. You only pay for fuel and tyres.”

He promises that the launch of the five-year plan has not pushed up the brand’s prices, with some cars costing even less than before the programme’s introduction.

Metivier-Beukes adds that the launch of the new 208 in the fast-growing small-car segment, as well as the introduction of the 4008 compact sports utility vehicle (SUV) will increase PSA’s numbers in 2012.

The 4008, a multipurpose SUV, will be PSA’s first entry into the local 4 × 4 market.

As for the 208, Metivier-Beukes promises competitive pricing. She hopes this car will reconquer the female market for Peugeot in South Africa, especially as it will feature a new low-emission engine from the French manufacturer.

PSA struggled with its profitability levels in South Africa last year, owing to the rand weakening to R11 to the euro, adds Harnie.

“We were profitable up to September, but we did not change our prices or our policies. Things look much better now. We increased prices in January, the same as everybody else.”

Harnie also notes that Peugeot, as a brand, is working towards selling an increasing percentage of its vehicles outside its current European stronghold. Last year, 48% of sales were outside Europe, with this expected to grow to more than 50% in 2012, up from the previous 20% to 25%.

This programme has gained momentum and urgency as the European market battles an increasingly tough economic environment.

Another way is which the French manufacturer hopes to gain traction is by selling more of its vehicles into the more profitable premium market.

PSA this year celebrates its tenth year in South Africa as a fully owned subsidiary of the French brand. It has grown from six models and six dealerships in 2002 to 11 models and 24 dealers in 2012, with the aim to grow to 31 dealers in 2013.

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