French automobile manufacturer PSA - formerly known as PSA Peugeot Citroën - said on Wednesday that its global revenue and sales during the first quarter of the year declined due to poor demand from the Chinese market and currency fluctuation across emerging markets.

PSA's revenue declined 1.4 percent to €13 billion ($14.7 billion). Global unit sales of Peugeot, Citroën and DS cars fell by 1.7 percent to 699,800 vehicles.

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French automobile company said its unit sales in China dropped by 17 percent, substantially dragging company's global sales.

In 2014, China overtook France to become the most important market for the company. However, PSA failed to capitalize as increasing competition in Chinese market led to substantial decline in its sales.  

Jean-Baptiste De Chatillon, PSA's chief financial officer, said that pressure on pricing in Chinese market is still significant, citing it as one of the major factors behind the company's poor performance in the world's largest car market.   

Experts claim that company's poor performance in China reflects PSA's inability to find stronghold outside traditional European market. Apart from China, the French company has been trying hard to make a breakthrough into other emerging markets like Latin America, North Africa and Middle East.

Meanwhile, company's car sales in traditional European market grew by 5 percent. Company said that marginal increase in European sales helped to partially offset effect of currency weakness in emerging markets.

TagsPSA, Peugeot, PSA Peugeot, china