Peugeot leaves the Australian market due to a sharp drop in sales
French automotive presence in Australia has suffered another blow. Independent distributor Inchcape Australasia and Stellantis have mutually agreed to end their partnership with Peugeot after the brand’s sales failed to gain traction. Both sides call it a “clean and cooperative separation” rather than a conflict.
History repeating itself with Citroen
Inchcape has had a similar experience before. In 2024, the company stopped supplying another Stellantis brand — Citroen — after its sales in Australia turned out to be lower than Ferrari’s. Now the same fate has befallen Peugeot: local sales volumes have been plummeting for several years without stabilizing.
Details of the decline: In the first five months of 2026, Peugeot sold only 373 cars in Australia, which is 35% less compared to the same period last year. The main “locomotive” was the Partner van, which accounted for 43% of all brand sales. It even surpassed the sales of the entire passenger car lineup, which includes the 308 hatchback (pre-facelift version), the 408 fastback, and the 2008, 3008, and 5008 crossovers. When a work van sells better than all passenger car models, it indicates serious problems in the showroom.
The situation was not any better earlier either. Peugeot sales fell by 29% in 2025 after a 25% drop in 2024. Even the updated lineup did not help the brand get closer to its record of 8,807 cars sold in 2007.
Peugeot is not completely leaving Australia
Despite the high-profile split, this does not mean the end for the “Lion” brand in the region. According to an official statement,
Stellantis has confirmed that the Peugeot brand will continue its operations in Australia and will provide updated information on local plans in the near future.
Inchcape, for its part, stated that it is working with Stellantis “to ensure a smooth transition for the brand, focusing on supporting customers, dealers, and partners.”
The company will no longer accept new orders, but potential buyers can still purchase existing Peugeot stock. The importer will also continue to provide warranty and service support during the transition period. The exact date of the final split has not yet been announced.
Peugeot’s future in Australia
After dropping Citroen and Peugeot, Inchcape is left with its long-time partner Subaru, as well as Chinese brands Deepal and Foton. Whether Peugeot will get a new independent distributor or join the Australian Stellantis portfolio (alongside Abarth, Alfa Romeo, Fiat, Jeep, and Leapmotor) remains to be seen.
This situation demonstrates how challenging the Australian market is for European brands, especially amidst fierce competition from Japanese, Korean, and Chinese manufacturers. The decline in Peugeot sales, despite model lineup updates, points to deeper issues related to brand positioning, pricing, and consumer perception. At the same time, Stellantis’s decision to keep the brand in the country but change its distribution model could be an attempt to rectify the situation through more direct control or finding a more effective partner. The story with Inchcape, which has already “buried” two French brands, highlights that even global players can face serious challenges in local markets where buyer preferences often differ from European ones.