PSA unveils bold target for Chinese market by 2015

Shanghai, September 5. (Gasgoo.com) - French automaker PSA Peugeot Citroen announced its ambitious target for the Chinese market yesterday. By 2015, PSA will sell one million vehicles in China, an increase of 395% from the year 2006.

"In 2015, PSA Peugeot Citroen intends to be solidly positioned in Europe, steadily growing and profitable, with extensive operations in other global markets and ranking among the leaders in each of its businesses," the company said in a statement.

By 2010, PSA will set up the third factory with its partner Dongfeng Automotive Company, and will introduce 12 new models to its product line-up. By 2015, the French automaker will set up a R&D center in China. 

PSA's is also studying the feasibility of forming a joint venture with another Chinese carmaker Hafei. If the tie-up secured, PSA would have its third plant in Shenzhen, which neighbors Hong Kong. Local media reports that both parties are expected to reach a final deal by the end of this year.

PSA sold 202,000 vehicles last year and the company’s the sales forecasts for 2007 and 2008 are 260,000 units and 300,000 units respectively. Aging models and bottleneck capacity have been key factors in PSA's recent slow increase in China.

During the first half of this year, PSA sold around 103,000 vehicles in China, gaining a slim 2% compared with last year. In contrast, the Chinese market as a whole increased by an average of 26.3%t.

Currently, Citroen brand models Fukang, Elysee, Picasso, Triomphe and Xsara and Peugeot brand models 206 and 307 are sold in China.