The car brand taking South Africa’s budget segment by storm

Citroen has made sweeping changes to it business strategy in South Africa over the past two years, ditching its old vehicles for a much more affordable selection of new models.

The French carmaker is trying to redefine itself as an entry-level brand, slashing the prices of its various cars in the process.

A big win for consumers

Citroen, which is owned by Stellantis, has not been a very popular brand in South Africa for several years, owing to fierce competition from brands with better recognition.

This includes other marquees within the Stellantis stable such as Peugeot and Opel, which effectively the sold the same cars but with a badge local customers were more familiar with.

One such example is the Citroen C3, which is a B-segment hatchback built on the same platform as the Peugeot 208 and the Opel Corsa, but which failed to achieve the same sales numbers as its counterparts.

2017 Citroen C3

Stellantis therefore decided to take Citroen in a different direction starting in 2023, when it launched the new C3.

While the name might be the same, the new car is nothing like the old one, as it is a compact crossover rather than a hatchback.

More importantly, the new C3 is a budget model made in India rather than Europe, which has had a dramatic effect on the car’s price tag.

Whereas the old C3 asked for a minimum of R305,900, the incoming crossover retailed for just R229,900 upon its release in May 2023, making it one of the most affordable cars in South Africa.

Naturally, this also lowered the cost of entry to the brand by a significant R76,000, widening its appeal and giving Citroen an identity distinct from that of Opel and Peugeot.

2023 Citroen C3

The automaker has since replicated this strategy with the C3 Aircross, which like the C3, now comes from India instead of Europe.

The Aircross was launched in July this year at a rate of just R344,900, shaving a whopping R105,000 off the nameplate’s asking price.

Thanks to this massive reduction, Citroen technically now has the cheapest seven-seater SUV in the country, as the Aircross can be optionally fitted with two more chairs for just R10,000.

The most important aspect of the company’s new market approach is that both of its products now retail for less than R400,000, which is how much the average motorist is prepared to spend on a new set of wheels in South Africa.

According to TransUnion, the average price of a new car sold in 2024 was R391,000, which gives a clear target for automakers to aim for regarding prices if they still want to be described as “affordable.”

While R400,000 may sound like a generous limit, only a quarter of the vehicles available in South Africa fall south of this figure, which gives a big advantage to the brands that still cater to this segment, including Citroen.