It is a significant blow for the French automotive presence in Australia. British distributor Inchcape Australasia announced on Tuesday the end of its partnership with Stellantis for the distribution of Peugeot in Australia, after almost ten years of collaboration. The lion brand thus becomes the second French carmaker to lose its Australian distributor in two years, following Citroën, dropped by Inchcape in 2024 after being outsold in Australia by… Ferrari.
The sales slump is staggering. Peugeot shifted just 373 vehicles in Australia in the first five months of 2026, a 35 per cent drop compared to the same period in 2025. The brand had once reached a historic peak of 8,807 sales in 2007, but managed only 1,350 last year. In a telling sign of the times, it is the Partner, a light commercial van, that accounts for 43 per cent of current sales, outselling the entire passenger car and SUV range combined.
The main reason for this decline is the surging popularity of Chinese brands. Inchcape itself has been pivoting toward Chinese manufacturers, adding Deepal and Foton to its portfolio in recent years. Newer arrivals such as Cupra, Leapmotor, JAC and Deepal now outsell Peugeot in Australian sales figures.
Despite the split with Inchcape, Stellantis moved to reassure the market. “Peugeot has a strong future in Australia, supported by a robust product pipeline and a clear long-term strategy,” said a Stellantis Australia spokesperson. The parent company is taking matters into its own hands and is seeking a new distributor, while the 29 Peugeot dealerships across the country will continue to provide warranty and servicing support throughout the transition period.
Peugeot’s Australian future could however take an unexpected turn: the brand is developing two new models in partnership with Chinese manufacturer Dongfeng, intended for export markets. A twist of fate for a brand founded in 1810, which may well need to rely on China to win back an Australian market now firmly dominated by Asian manufacturers.
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