The brand has reached its objective, which should result in its exceeding the best annual result it has ever had of 1,955,000 sales reached in 2002.

The record half-year performance was achieved thanks to a 39.1% growth of sales outside Western Europe (331,000 vehicles sold compared with 238,100 during the same period of 2003), which account for over 32% of all Peugeot sales in the world.

Peugeot is able to demonstrate the acceleration of its growth outside Central and Western Europe during the first half year with the following results:

• Eastern Europe and Mediterranean, sales up by 41.5% compared with the first 2003 half-year, with Turkey being a highlight.
• In South America, where conditions remain difficult, the brand’s sales more than doubled in Argentina.
• In Western Europe (17 countries), in a market with a 3.7% growth, Peugeot’s sales decreased by 4.8% (690,000 cars sold compared with 725,300 in the first 2003 half-year).

This result should be put into perspective. Indeed, Peugeot’s penetration was achieved without the contribution of the 106, whose production was stopped in the second half-year of 2003, and a 406 whose volumes are decreasing, due to the introduction of the 407.

This negative difference will be significantly reduced in the second half-year, with the arrival of the 407 sedan and SW that the company expects to sell 150,000 units in 2004 (as at the end of June, 41,000 orders had already been placed). In addition, volumes generated by new engines, including the new HDi DV6, a joint co-operation with Ford, was recently launched on the 206, 307 and 407 models, as well as a six cylinder HDi 2.7 litre to equip the 607 at the end of the year.

Outside France (16 countries), Peugeot achieved a 6.4% penetration in the retail market, down 0.5 points compared with the first half-year of 2003.

In Germany, where Peugeot is in with second position for imported brands in a retail car market down 1.7%, sales were just over 62,500 registrations with a market share of 3.8%.

In Italy, in spite of the end of the « Eco Incentivi », the market was up 2.9%. Peugeot, in order not to damage the brand image of its products, did not take part in such competitive offers in spite of consequences on its market share down 0.9 point (4.9% compared with 5.8%).

In Great Britain, the market was up 2.1%, with strong promotional campaigns. In that context, Peugeot, with an eye on profitability, accepted a decrease in penetration to 6.7% compared with 7.2%.

In Spain, Peugeot achieved 81,500 private car registrations (+ 11.8% compared with same period in 2003), in a market where a strong increase (14.6%) was mainly due to growing sales to rental companies and company fleets. Its penetration is around 10.3% compared with 10.6%.

In Belgium and Luxembourg where the private car market (VP) increased by 11%, Peugeot achieved 34,200 registrations, i.e. 10.7% penetration. For model classification, Peugeot came second with the 307 and third with the 206.

In the Netherlands, with a -0.9% market, the brand achieved 27,200 registrations, i.e. 9.6% penetration (-1.8 point). However, Peugeot came 2nd in brand classifications, the 307 being at the top of the model classification.

In Portugal, where the VP market is up 6% (market influenced by strong increases in short term rental companies), Peugeot keeps its 2nd place in the brand classifications, has stable volumes in the first half-year of 2003, but its penetration was down, from 11.8% to 10.8%.

In Austria, in a private car market up 4%, Peugeot achieved 10,200 registrations. Its penetration 6% compared with 6.7%.

In Switzerland, in a stable VP market compared with 2003, Peugeot achieved 5.7% penetration compared with 5.9%.

In Sweden, with almost 10,000 sales, Peugeot increased its penetration by 0.3 point in a market down by 1.3%.

In Norway, in a market with increasing private car sales, Peugeot achieved a 6% growth of its registrations, with a 7.3% penetration.

In Finland, due to an aggressive sales policy, Peugeot took advantage of a market up by 5.2% with a sales increase of 11.4%, enabling the French car maker to achieve a 6.8% penetration.

In Denmark, the gradual price convergence objective penalised Peugeot sales, where volumes were down 11%, with an 11.8% market share.

In Greece, where the private car market benefits from the « Olympics » effect and increased by 15.7%, Peugeot achieved a 5.6% share.

In Ireland, in a market up by 8.8%, Peugeot grew by 9.2%, and achieved a 5.1% penetration.

Peugeot Outside Western Europe

Outside Western Europe, Peugeot achieved its best half year sales performance, with a volume of 331,000 sales compared with 238,100 during the first half-year in 2003, i.e. a 39.1% growth.

• Central Europe Zone

In the main countries of Central Europe - Poland, Hungary, Czech Republic, Slovenia, Croatia and Slovakia, Peugeot had stable volumes with 38,000 vehicles sold in the past six months.

• Eastern Europe and Mediterranean areas

Peugeot’s sales in this area, compared with the first half of 2003, increased by 41.5 % with 73,500 vehicles sold. A significant part of those sales was due to the recovery in Turkey.

In Turkey, where the market is up by over 200%, the brand sold 27,000 vehicles in the first 2004 half-year, i.e. a 145% increase from 2003.

In Romania, Peugeot continues its growth of 2003 with 3,800 cars sold, a 44% increase from the 1st half-year of the past year.

In Russia, in a market where imports were up by over 80%, the brand competes with Asian makers, but managed to stay at its 2003 half-year level with 4,000 vehicles sold compared with 4,300 in 2003.

The opening of a subsidiary during the last four months should allow Peugeot to improve its performances in the coming months.

In other Eastern Europe countries, the Bulgarian market went up 32% compared with the previous year. With 4,600 registrations, Peugeot accounts for 14.9% of the market and retains its leading position.

In the Baltic countries, the company increased its market shares significantly (13% in Lithuania with 2,700 registrations).

In North Africa, in Algeria, Peugeot, with 10,500 cars sold over the first six months of the year, retains its leading position.

In Morocco, Peugeot grew by 44% compared with the first 2003 half-year, accounting for 6,250 cars sold. Here too, Peugeot strengthens its leading position; in addition, the 407, presented to at the Casablanca car exhibition, has met with a good reception, with several orders.

Results in the Arabic Peninsula, with 3,900 cars sold in the first six months of 2004, are up by 31% compared with the same period of 2003.

• Latin America area

For the whole area, 48,000 cars were sold, compared with 39,000 during the same period in 2003 (+23%).

In Argentina, where the market is up 144 %, Peugeot’s market share is 9.6%, with, 12,600 sales in the first six months of the year (two-fold sales increase compared with 2003).

The 307 launch at the Palomar plant met with considerable success, contributing to these good results.

In Brazil, in an uncertain economic context, the market is moving slowly upwards, Peugeot achieved 19,300 sales and a 2.8% penetration

In Chile, in a market that is up by approximately 28% compared with 2003, Peugeot comes fifth in the commercial car/private car market, with a 7.6% penetration.

In Mexico, in a market up by 8% compared with the same period in 2003, the Peugeot subsidiary continues its growth, with 7,100 registrations. The launch of the 307CC should reinforce clients’ interest in the brand.

Central America, Andean countries and the Caribbean are up 20% compared with the same period of 2003.

• Pacific Asia Zone

The zone sold 13,500 cars in the 1st half-year of 2004, in a difficult context. Indeed, the Euro and dollar rates compared to local currencies is causing difficulty.

In Japan, in a stagnant market, with strong competition, Peugeot managed to sell 6,000 vehicles, accounting for a 5.2% share of the imported car market.

In Asia, New Zealand and Australia, the monetary situation described above disturbs the sales transactions. However, in Australia, where the market is up, Peugeot retains its 4th place among European brands, with 3,400 vehicles.

In China, the network should have 80 sales outlets operating in the 52 largest cities in the country by August. The excellent reception of the 307 sedan at the latest Beijing exhibition is promising for future sales (Peugeot expects to sell 15,000 307 sedans in 2004 and 50,000 in a full year).

• Iran zone

131,000 units, more than twice the first 2003 half-year amount, were sold to Peugeot’s partner, Iran Khodro, with whom two new agreements have just been signed. 51,500 206's were sold, up 160% from 2003.

• Africa/Dom-Tom (French Overseas Departments) zone

2004 half-year sales amounted to 27,000 vehicles. In spite of the Ivory Coast situation, western and central Africa sold 1,500 vehicles.

Peugeot’s subsidiary in South Africa, in a market growing by 19.5% sold 3,800 cars, up 68% compared with the same period in 2003.

DOM TOMs (French islands) in spite of the 106 stoppage, the Islands keep their sales level of 2003, with 8,300 vehicles sold.

Peugeot's Australian sales will be boosted by the 407 which is on the way to Australia now.