PEUGEOT

Peugeot to cut prices in Europe, aiming for competitiveness

Peugeot has been undergoing changes following the restructuring of Stellantis, which included the departure of Carlos Tavares and adjustments to the board. The French company's new CEO, Alain Favey, who took over the brand with the mission of boosting electric vehicle sales in Europe by 2025, is confident that new models, updated engines and, if necessary, price cuts can make the line more competitive.

Favey, who has previously held senior positions at Bentley, Porsche, Skoda, Europcar and the Volkswagen Group, took over the helm of Peugeot this month, succeeding Linda Jackson. The brand has been the Stellantis group's main force in Europe, with models such as the 3008 midsize SUV and the 208 hatchback leading their segments, despite their high prices.

According to the Automotive News portal, the automaker has ambitions to become the leader in electric vehicles on the European continent. The automaker already holds the title in the compact category with the e-208, which was last year's best-selling compact electric car, with more than 35,000 units sold, according to Dataforce — double the volume of the e-Corsa, its platform-based sibling from the Opel/Vauxhall brands.

Peugeot's electric sales in Europe grew 8% last year, outperforming the market by around 14 percentage points. However, some important models saw declines: the e-208 itself fell by 23%, despite leading its segment, while the small SUV e-2008 fell by 11%.

In total, Peugeot sold around 83,000 electric vehicles in Europe in 2023, which represented 13% of its sales on the continent — slightly below the market average. To meet stricter CO₂ emissions targets in 2025, the brand will likely need to increase this share to at least 20%.

It is worth remembering that its emissions are calculated within the Stellantis group, which, like other automakers, is buying emissions credits from Tesla this year and plans to expand the Chinese electric brand Leapmotor with local manufacturing.

The E-208 may become cheaper...Peugeot has also reduced the prices of some models, a strategy already adopted by other automakers. In France, the entry-level version of the e-208 now costs €28,000 — a drop of €6,000 compared to the original price of approximately €34,000, when it was launched in mid-2023. In addition, in Italy, the compact electric car will be available to lease for just €99 per month.

For 2025, Peugeot has not announced any major launches, but Favey said he is reviewing the brand's future portfolio. The next model to undergo a facelift will be the 208, whose last major update took place in 2019. The new generation, scheduled for 2026, will be built on the STLA Small platform.

Brazil goes hybrid...Fiat was responsible for debuting the Bio-Hybrid system in Brazil, but it should soon reach other brands in the group. Developed by Stellantis, the mild-hybrid propulsion (MHEV) combines the 1.0 T200 flex engine with an electric unit and a small battery.

You may remember that the 208 already had an electric version here, however, since the restyling carried out last year, the hatchback has only been sold with 3-cylinder engines (both turbo and naturally aspirated) shared with Fiat and Citroën. With the new Proconve L8 emission rules, it is important for brands to have electrified models across their entire lineup, even if they are not pure hybrids. The case of the 2008 SUV is a little less complicated. 

Since the current generation began to be offered in Brazil, it has always had the E-2008 option, and despite not having a significant volume, it helps the brand to improve its numbers in the general emissions classification. With the Bio-Hybrid, this volume tends to increase, since the SUV in its combustion versions is only sold with the T200 engine.

Peugeot’s new CEO, Alain Favey, is focused on growing the brand’s EV sales in Europe by 2025 with new models, powertrain upgrades and, in some cases, price cuts.

Favey, who has previously held senior roles at Europcar and Volkswagen Group brands including Bentley, Porsche and Skoda, took over as Peugeot’s new CEO earlier this month, replacing Linda Jackson.

Peugeot has been Stellantis’s main brand in Europe, with models such as the 3008 compact SUV and 208 hatchback often leading their segments in sales, despite rising prices.

The executive said at the “E Lion” event on February 13 that Peugeot’s ambition is to become the market leader among mainstream EVs in Europe.

Peugeot currently holds this position in the compact electric segment, with the e-208 being the best-selling vehicle in the category in 2023, totaling more than 35,000 units sold – double the number of the Opel Corsa-e, its closest competitor within the Stellantis group.

Although Peugeot's electric vehicle sales grew by 8% last year, outperforming the average performance of the European market, some models saw a decline, including the e-208 itself, which fell by 23%, and the e-2008 compact SUV, which recorded a decline of 11%.

In total, Peugeot sold around 83,000 EVs in Europe in 2023, representing 13% of its total sales in the region, a figure slightly below the market average.

To meet the European Union's stricter CO2 emissions targets, the brand will likely need to increase this share to at least 20% by 2024, although its emissions will be accounted for within the Stellantis group.

Stellantis, in fact, is among the automakers that have resorted to purchasing emissions credits from Tesla to comply with environmental regulations.

One of Peugeot's trump cards for accelerating its EV sales is the arrival of the new generation of the compact SUV e-3008 and the mid-size SUV e-5008, now with a 100% electric option.

Neither model had this configuration in the previous generation. Since its launch, the e-3008 has already accumulated 120,000 orders, 22% of which are for the electric version.

Starting in March, all-wheel drive versions of the electric SUVs will hit the market, equipped with a 213 hp front engine and a 112 hp rear engine, totaling 325 hp of power.

In addition, Peugeot will launch a five-seater version of the e-5008, which will offer a trunk with a capacity of up to 1,000 liters, or 2,300 liters with the rear seats folded down.

Another new feature will be the electric version of the Peugeot 408, a mid-size fastback model that has been available with a combustion engine and a hybrid since its launch. With this, Peugeot will have electric versions of its entire line, except for the 508 sedan and station wagon.

Even with the expansion of the electric line, Peugeot will face strong competition, especially on its own territory. Renault is launching two new compact electric cars: the Renault 5, which has quickly become one of the 10 best-selling cars in France since its debut in late 2024, and the Renault 4 electric SUV.

Asked about how Peugeot plans to respond to the arrival of the Renault 5, the brand's head of product, Agnès Tesson-Faget, highlighted that the e-208 was the best-selling general-purpose electric car in France in 2023 and said the brand is “ready to fight”.

In addition to new models, Peugeot is also expanding its partial electrification offerings.

The mild hybrid range will feature a 136 hp 1.2 turbo engine and a 48-volt electrical system, capable of reducing CO2 emissions by up to 15%. Plug-in hybrids (PHEVs) will be available for the 308, 3008, 408, 508 and 5008 models.

Another strategy adopted to strengthen the brand's competitiveness was the price reduction of some models. The e-208, for example, had its base price cut by 6,000 euros in France, now costing 28,000 euros.

In Italy, the electric hatchback can be purchased through leasing for just 99 euros per month. For comparison purposes, when the e-208 was launched in mid-2023, it cost around 34,000 euros.

Despite its aggressive plans for electric vehicles, Peugeot has not announced any new launches for 2025. However, Alain Favey revealed that he is conducting a review of the brand's product strategy.

The next big model expected is the third generation Peugeot 208, which is expected to debut in 2026 on Stellantis' new STLA Small platform.

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