PSA’s Strange Strategy for Countering the Plummeting Sales in Asia

Namibia Flag

We all know the sales of PSA cars have been plummeting in Asia, on the whole, regardless of how they surged by a whopping 54.5 percent in Africa and the Middle East in 2017. When you consider the importance of Asia on the geographical and economic scale, especially for businesses that are looking to grow and penetrate into newer markets, you have got say that PSA must have taken these plummeting numbers extremely seriously and done everything within the company’s power to get the numbers surging again, right? Wrong!

Surprisingly, PSA has recently chosen to enter into an agreement with the government of Namibia, according to which the company will set up its plants in the country with an output capacity of 5,000 vehicles per annum. The plant is said to be operational by the year 2020. This plant will play a vital role in meeting the demands of the customers in the African region, contributing to the long term goal of the company to significantly boost its sales in Asia and Africa. However, when you consider how the sales of PSA have been falling in Asia recently, it has got to be said that the company appears to have things figured out all wrong.

The basic rule of management governs that a business needs to steady its ship in places where it has already reached, instead of wandering into unexplored waters. The market of Africa might prove to be great for PSA, no doubt, but that will only serve to divert the attention away from the Asian market. We all know how the Asian market has been regarded as “the” market for growth, over the past several years. Unless PSA starts taking things in Asia more seriously and capitalizes before the Asian market becomes concentrated for good, you can be sure that it won’t be reaching the desired goal of selling one million vehicles in 2025.