Inchcape Australia will surrender the right to sell Peugeot vehicles from 2027 due to declining sales volumes. While the current partnership is concluding, Stellantis, Peugeot’s global parent company, has confirmed the brand will continue in Australia under a new arrangement to maintain market continuity.
Why is Inchcape ending its Peugeot distribution deal?
Inchcape, the international distributor best known in Australia as Subaru’s importer, has reached an agreement with Stellantis to terminate its Peugeot distribution partnership. The decision follows a significant downward trend in sales for the French manufacturer.
According to sales data, Peugeot delivered only 373 cars in the first five months of this year. This figure represents a 35 per cent decline compared to its record lows of 2025. Annual sales for the brand are currently on track to fall below 1,000 units for the first time in decades.
The long-term decline is evident when comparing historical figures. Peugeot sales dropped from 7,025 units in 2005 to 4,000 in 2015, and further down to 1,350 last year. If current trends persist through 2026, total sales would represent an 87 per cent drop from 2005 levels.
In a statement to the media, Inchcape confirmed the end of the road for its current arrangement but noted they are working with Stellantis to manage a transition period. The company has recently shifted its focus toward Chinese brands, including Deepal and Foton, moving away from the French automotive sector.
Peugeot has maintained a presence in the Australian market for well more than 100 years, having supplied its first local vehicles prior to the First World War.
How do French car sales compare to Chinese imports?
The shift in Inchcape’s strategy reflects a broader change in the Australian automotive landscape. French car sales have nearly halved in Australia since 2019, falling to fewer than 4,000 units last year.
Conversely, Chinese imports have seen massive growth. According to recent data, Chinese imports increased tenfold to become the number one supplier of cars to Australia with more than 220,000 sales in 2025.
This market divergence is driving major manufacturers to adjust their regional strategies. Stellantis, the parent company of Peugeot, Fiat, Alfa Romeo, and Jeep, is already pivoting toward Chinese manufacturing through several key moves:
- Leapmotor Investment: Stellantis has poured investment into Chinese maker Leapmotor to create a competitive alternative to low-cost models.
- Dongfeng Joint Venture: Stellantis announced a partnership with China’s Dongfeng to produce cut-price models built in China under the Jeep and Peugeot badges.
What is Stellantis’ plan for Peugeot’s future?
Despite the change in distributors, Stellantis maintains that Peugeot is not exiting the Australian market. A Stellantis Australia spokesperson stated that the brand has a “strong future in Australia” and is backed by a “robust product pipeline.”
The company intends to maintain continuity of distribution, though the specific details of the new arrangement have not been disclosed. The brand’s future presence could take several forms:
Potential Distribution Models
Stellantis may establish its own dealerships, which currently host brands like Jeep, Fiat, Alfa Romeo, and Leapmotor. Alternatively, the company could enter a third-party arrangement with an existing importer, such as ATECO, which currently represents Renault, Maserati, and RAM.
Regardless of the model, any future deal is expected to cover full vehicle sales, parts supply, and servicing capabilities to ensure brand stability.
Will existing Peugeot owners be affected?
Current Peugeot owners can expect continuity during the transition. Inchcape has confirmed it will continue to support existing stock, warranties, and servicing throughout the handover process.
Stellantis has also reiterated its commitment to customers and partners, stating they are confident in the brand’s long-term prospects in the Australian market. The transition period will be managed collaboratively between the two companies to minimize disruption to vehicle owners.
Frequently Asked Questions
Is Peugeot leaving Australia?
No. Stellantis has confirmed that the Peugeot brand will continue in Australia under a new distribution arrangement following the end of the Inchcape partnership.
When will the Inchcape and Peugeot partnership end?
The partnership is set to end by 2027, following a transition period to be confirmed by both Inchcape and Stellantis.
Why is Inchcape stopping Peugeot sales?
Inchcape is shifting its focus toward Chinese automotive brands like Deepal and Foton following a significant decline in Peugeot sales volumes in Australia.
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