Peugeot car sales fall, but market share holds up.

French car maker Peugeot has announced that revenues for Q1 2009 have dropped 24.9%, and total car sales have dropped by 18.7% compared to 2008.

The decline in revenue was consistent with the overall market drop. Car companies across the world are slowing down production and cutting workforces in an effort to cut costs amidst low car sales.

However, the manufacturer maintained its market share in Western Europe at 13.8% as it benefits from leading the way in the manufacture of light commercial vehicles such as the 107, 206 and 207, and Citroën C1, C3 and C5. Sales of these cars have been boosted by the demand for small, low emission vehicles. In the UK alone, the Society of Manufacturers and Traders (SMMT) revealed that so-called ‘superminis’ – of which the Peugeot 207 is one – account for 36.6% of the UK new car market.

The carmaker said it “expects 2009 to be a loss making year” and that “liquidity was a key priority”.  The manufacturer has received €3 billion (£2.7bn) French government loan and a €400 million (£355m) European Investment loan, which it hopes will satisfy the needs of the industrial and commercial activity for the forthcoming year.