Groupe PSA Acquires a Controlling Interest in Jian Xin, a Chinese Automotive Spare Parts Distributor

Regulatory News:

With this acquisition, Groupe PSA (Paris:UG) will be able to accelerate the rollout of its aftermarket offering in China by rapidly establishing its position in the market, which represents 130 million vehicles.

Created more than 20 years ago, Jian Xin is currently the leading spare parts distributor in the Shanghai region. Every year, it sells more than 5 million parts sourced from major original equipment manufacturers.

By obtaining control of Jian Xin, Groupe PSA will be able to establish a position in the independent aftermarket (IAM) in China. It will gain access to a competitive and efficient supply chain distribution system offering delivery times and frequencies that meet the highest market standards. Its objective is to accelerate growth in sales of multi-brand parts, including in its new Eurorepar range, which Groupe PSA developed specifically for the Chinese market.

The acquisition also represents an opportunity for the Group to expand its network of multi-brand Euro Repar Car Service garages, as most Jian Xin customers are independent auto repair shops, many of which are likely to join the network. Following a recruitment fair in Shanghai in October (attended by Christophe Musy, Executive Vice President, PSA Aftermarket), more than 23 auto repair shops have already joined the network.

"Our multi-brand aftermarket strategy, one of the pillars of the Push to Pass strategic plan, aims to meet the needs of all after-sales customers around the world, regardless of their purchasing power and the make or age of their vehicle,” said Christophe Musy. "China will soon be the world’s biggest aftermarket, and we have set ourselves very high ambitions there, which is why we’re already securing strong market positions.”

About Groupe PSA

The Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all client expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, as well as a wide array of mobility and smart services under its Free2Move brand, aiming to become a great carmaker and the preferred mobility provider. It is an early innovator in the field of autonomous and connected cars. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia. Find out more at groupe-psa.com/en.

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