301 is more than just another number for Peugeot

Dubai: Peugeot wants to be more than a sporty hatchback seller in these markets. In keeping with its volume aspirations, the French marque has introduced the 301 sedan in the Gulf, which Peugeot believes will create more than a niche in the intensely competitive C category.

To ensure optimum prospects, the 301 — featuring a 1.6-litre engine and running up 115-bhp — will have a starting price just under Dh50,000 and available in four specifications.

But why would Peugeot want to build on its hatchback credentials and try to be a volume brand in these markets? “There is no discrepancy, if you look at the Middle East markets, the wide majority sold in the C segment — more than 90 per cent — are sedans,” said Marc Bocque, head of communications and external relations at Peugeot International.

“At below Dh50,000, the 301 becomes extremely competitive and will be our instrument of conquest for the region, where we intend to double sales.”

In fact, there is a lot riding on this model, which has been touted as the key driver of the carmaker’s aspirations in the “emerging markets”. Unveiled at the 2012 Paris Auto Show, the commercial launch took place late last year. It has already built up quite a following in Algeria, touching volumes in the first four months that were forecast for the full year.

But will it work well in the GCC? The C category sedan range is intensely fought over, and much of that is related to the pricing. Bocque reckons that the 301 – built at the Vigo plant in Spain - will stand up to the test on all possible counts. Forecasts are that the model could conjure up volumes of 90,000 units against the pre-launch estimates of 75,000 units.

“They want a good design, reliability and sturdiness; on top of that our partners, particularly those in Saudi Arabia, is widening the Peugeot exposure with new facilities (known as the Blue Box),” Bocque said. “It could even open up the fleet market for us here.

“With our updated line-up that includes the 301, we can cover more than 30 per cent of the available automotive marketplace in the region as against 18 per cent (keeping in mind that we are not represented in SUV).

“We are facing strong winds in Europe and to compensate the first rule is to accelerate in the international markets as much as we can.”

To do that the plan is to launch two new models each year. There will be a further sedan introduction later this year, this time primed for the upper C category. Bocque declined to name the model or the pricing.

Currently, Peugeot has the 508 sedan at the top end as well as the 407, which is being phased out.

With the 310 hitting its stride, the carmaker is setting itself for 25,000 units from these markets by 2015 and 50,000 units by 2018.