Peugeot sees China sales up 25-30 percent

SHANGHAI (Reuters) -- PSA/Peugeot-Citroen said today it expects its sales in China to increase by 25-30 percent this year, outpacing most industry experts' growth forecasts for the world's second-biggest car market.

Claude Vajsman, deputy general manager at Peugeot's China venture, told reporters that the carmaker was also considering building a third car plant in China.

Peugeot's China sales topped 200,000 units in 2006, and the company has previously indicated it hoped to sell at least 260,000 units this year, and top 300,000 units by 2008.

Peugeot is already doubling the capacity of its central China plant to 300,000 vehicles a year by 2008 and is building a second facility with capacity of 150,000 vehicles a year.

Vajsman gave no details on a possible third plant, saying only that a new facility was under discussion with local partner Dongfeng Motor.