Peugeot 204 - Commercial

Commercial

When the Peugeot 204 was launched in 1965, obvious domestic market competitors were the Renault 10 and the Simca 1300. Both were rear-wheel-drive, and the Renault was rear-engined. Of the traditionally more avant garde competitors, Citroën produced, till 1970, only cars that were substantially smaller or substantially larger while Panhard, starved of product investment, had retreated into a low volume niche, offering a model which would soon be withdrawn in order to free up production capacity for small Citroën vans.

For Peugeot, a traditional manufacturer of conventional bourgeois sedans, to launch a transverse-engined front-wheel-drive saloon, was startling: no secret was made of the extent to which the 204 had been inspired by British developments. The Peugeot was the same length as the Renault 10 and over 20 cm shorter than the Simca 1300, but its configuration conferred a clear space advantage, as subsequent model introductions from Simca in 1967 and Renault in 1970 appeared to acknowledge. Sales of the 204 got off to a cautious start, with no need to compete solely on price: the car was heavily trailed by press leaks so that by the time of its formal announcement over 5,000 had already been ordered unseen. By 1969 the 204 had nonetheless climbed to the top of the French sales charts and, together with the newly introduced 204 based 304, redefined the domestic market for small sedans in the process. The sales success of the 204 also moved Peugeot from fourth to second place in the French sales charts, overtaking Simca and Citroen in the process. In this case market share seems to have been increased without excessively compromising corporate profitability: the commercial rivals would each suffer a financial collapse, the businesses both coming under the control of Peugeot, within the next ten years.

In the 1960s Europe was still for most purposes divided into national markets and 72% of the 204s produced were sold in France. Principal export markets within Europe were West Germany – Germany being then as now Europe's largest 'national' market – and Benelux. However, most western European markets took some 204s. In Africa the 204 never achieved the popularity of its larger siblings. Nevertheless, the 204 was not entirely unknown outside Europe.

In 1976, when the 204 was withdrawn, it had been joined in the Peugeot range by the 'supermini' class Peugeot 104. Like the 203 before it, the 204 had no immediate replacement. Ultimately the hatchback Peugeot 205 introduced late in 1982 occupied a market position comparable to that occupied till 1976 by the 204. In the meantime the Peugeot 304 soldiered on until 1980, complemented since late 1977 by its replacement. Once the 304 was being produced in tandem with its successor it could be priced more aggressively, so that customers who till 1976 would have chosen a 204 were able to afford what was virtually the same car with a larger engine and a larger boot/trunk.