Peugeot has been in motion long before many of today’s automotive heavyweights even existed. The French marque had already racked up eight decades when it produced its first car—135 years ago. Yet in a world increasingly dominated by newcomers like Hyundai and BYD, age alone doesn’t define a brand’s relevance. The question Peugeot now faces is: what sets it apart?
According to CEO Alain Favey, the answer is audacious clarity. “There are lots of competitors, but I see a sea of banality,” he says. “Peugeot has heritage, innovation, design, French style. We’re trying to get a position that’s different, rather than being more banal than the banal. And we need to speed up.”
Since taking the helm earlier this year, Favey has moved quickly to breathe new life into Peugeot’s identity. One of his first acts: ordering a GTI version of the E-208. “I couldn’t believe we weren’t using that heritage. We need to do it,” he says. The choice for electric propulsion wasn’t purely stylistic. “It’s the market reality today. And it has the performance,” Favey explains, noting that a petrol GTI in France would face punishing taxes.
Peugeot’s ethos, Favey emphasizes, is rooted in both its geography and its DNA. The company remains based in Eastern France, in a region he describes as “serious” and “hardworking”—qualities he likens to a Germanic pragmatism. Yet Peugeot is far from austere. “We have French charisma, and high-tech aesthetics. We’re known for driving sensations, and we’re future proof and built to last,” he says. “This is one of the few great brands in Europe. There’s a wealth of value in our history and DNA.”
Experience clearly informs his strategy. Favey’s résumé includes senior roles at Porsche and Bentley, as well as a stint running Citroën in the UK. But he’s not blind to Peugeot’s current commercial hurdles. Only 5 percent of European cars sold today bear the lion emblem—down from 7 percent pre-pandemic.
The decline, he admits, has roots in pricing strategy and marketing approach. “We increased prices too fast after Covid. We did well on fleet but lost on retail as we weren’t active enough there. The tone and style of our ads will be different in future. Warm, dynamic and human.” But marketing alone isn’t a panacea. “In the end it’s all about product. We must deliver on quality. And innovation—it’s why we’re here on planet earth. We’re not going to be conservative.”
A prime example of that innovation is Peugeot’s new Hypersquare by-wire steering system, which Favey compares to Audi’s Quattro for its potential to reshape public perception. “It demonstrates what Peugeot is about, playing a role in the future of cars. Eventually it will go throughout our range.”
In an era where electric mobility, design differentiation, and tech-forward features are non-negotiable, Peugeot is staking a claim not just as a heritage brand, but as a forward-thinking player. As Favey puts it, “We’re serious about pleasure.” And if the E-208 GTI is any indication, Peugeot intends to make that pleasure unmistakably French—and unmistakably electric.
Source: Top Gear