The French automaker DS is attempting a bold strategy: establishing itself as a luxury brand in a market dominated by German giants. But after a decade since its relaunch, the brand struggles to gain traction, with European sales down 21% this year to just 20,784 cars. Is this the right approach, or is DS destined to remain a niche player?
The Vision of Carlos Tavares
In 2014, then-CEO Carlos Tavares outlined DS’s mission: to embody the “French touch” in automotive design, offering sophistication and trendiness as an alternative to German conservatism. The idea was to replicate the success of luxury fashion houses like Chanel and Hermès, creating a premium brand rooted in avant-garde design and exceptional customer service.
However, translating this vision into sales has proven difficult. The strategy hinges on differentiating through style rather than head-to-head competition. The problem? Luxury car buyers don’t necessarily seek an alternative to German engineering; they seek prestige, reliability, and resale value.
A Decade of Struggle
Despite launching the DS 7 Crossback in 2017, the brand has never exceeded 50,000 European registrations in a year. Chinese sales have evaporated as domestic EV brands gain popularity. Now, under CEO Xavier Peugeot, DS is pushing forward with a new lineup, including the all-electric No8 crossover, hoping to revive momentum.
Peugeot acknowledges the recent sales slump but insists 2024 and 2025 are “transition years.” The challenge is clear: in a highly competitive market, brands must constantly refresh their product range to avoid stagnation. DS has been slow to innovate, with its last entirely new model – the No8 – arriving in 2021.
The Luxury Market Reality
The DS story highlights a critical dynamic in the automotive industry. Stellantis, the parent company, manages 13 brands, many with stronger potential for faster returns. This creates internal competition for investment, leaving DS to operate on a tighter budget. Despite Peugeot’s claim of profitability, the question remains: will Stellantis continue to fund a brand that consistently underperforms?
The brand’s reliance on French identity is also a factor. While French consumers may favor domestic brands, this advantage doesn’t translate well internationally. DS cars retain their core strengths—comfortable rides, advanced tech, and avant-garde design—but these aren’t enough to overcome broader market challenges.
What DS Needs to Succeed
The latest DS models, like the No8, represent a step forward in design and technology. The electric drivetrain offers a competitive range of up to 465 miles, and the interior has received praise for its quality. However, success hinges on breaking through consumer awareness, improving resale values, and building a stronger brand image.
The brand’s biggest challenge may be its inability to carve out a clear niche. Meanwhile, competitors like Cupra have thrived by focusing on dynamic design, performance, and a younger demographic. Cupra’s aggressive marketing and cultural integration—sponsoring sports teams and hosting events—have resonated with consumers in a way DS has yet to match.
The Future of DS
Xavier Peugeot insists that closing DS is “not on the table,” citing its profitability and Stellantis’ limited access to the premium market. The next three years will be critical. If DS can triple its sales and become a consistent force in the luxury segment, it may secure its future. If not, the French gamble on luxury could end in another restructuring.
