Dongfeng PSA JV to build 3rd plant by year end

Shanghai, July 6 (Gasgoo.com) French carmaker PSA Peugeot and its Chinese partner Dongfeng Motor Group have finally nailed down some details about their third plant in China. Recent sources said construction of the plant will start at the end of this year.

Reportedly, Dongfeng and PSA will each launch a new model in China every year, expecting to raise the joint venture's share in the Chinese market to 5% from the current 3.5% in two-three years. By 2015, PSA will import 12 new models into China. Apart from that, PSA says it has started its research and development in global small cars, aiming to benefit from the emerging markets like China and Latin America.

Earlier this year, PSA has started its intentions to accelerate its expansion in China, now the world's largest auto market. On May 4, it signed an initial agreement with Changan Automotive Group to form a 50-50 vehicle-manufacturing venture, its second JV in China.

Later, PSA established its Asian headquarters in Shanghai and set a target to sell two million vehicles annually in China by 2020, with its market share to grow to 10%.

PSA Peugeot aims to sell about 400,000 cars in China this year, approaching the annual capacity of 450,000 units of the current two facilities it operates with Dongfeng Motor in Wuhan, central China.