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Peugeot agrees on JV
PSA Peugeot Citroen has tied up with Harbin Hafei Automobile Industry Group Co to form its second Chinese joint venture, part of the French car maker’s plans to boost sales in emerging markets during its worldwide revival.
The new equally owned joint venture, located in Shenzhen, involves a total investment of two billion yuan (US$266 million) and is mainly responsible for making vans, according to an e-mail from Peugeot Citroen China today.
``The official contract will be signed at earliest by the end of the year and the first model is expected to hit the market next year,’’ Europe’s second largest car maker said in the statement.
The car maker sold nearly 210,000 units in China last year including the best selling Peugeot 307 and C-triomphe sedans, which it makes with local partner Dongfeng Motor Co Ltd.
Peugeot targets sales of one million units in China by 2015 with five to six percent of the country’s market share, according to Denis Duchesne, president of PSA China.
This is the first time for Peugeot to unveil ambitious plan for the Chinese market since Duchesne took his new position in June this year after a handful of overseas car makers have already positioned themselves in the world’s second largest auto market, earning hefty profits.
The car maker plans to double production capacity at its manufacturing facility in Wuhan, central China, to 400,000 units by 2009, which would further expand to 600,000 by 2012.
A third plant is also in the plans with Dongfeng Motor to be built later to meet the growing market demand in China.
It also plans to develop 12 new models in China by 2010 in order to expand product portfolio to attract first time buyers.
The aggressive plans for the Chinese market follow its worldwide restructuring plan to improve profitability especially in emerging markets including China, Russia and South America.
The new equally owned joint venture, located in Shenzhen, involves a total investment of two billion yuan (US$266 million) and is mainly responsible for making vans, according to an e-mail from Peugeot Citroen China today.
``The official contract will be signed at earliest by the end of the year and the first model is expected to hit the market next year,’’ Europe’s second largest car maker said in the statement.
The car maker sold nearly 210,000 units in China last year including the best selling Peugeot 307 and C-triomphe sedans, which it makes with local partner Dongfeng Motor Co Ltd.
Peugeot targets sales of one million units in China by 2015 with five to six percent of the country’s market share, according to Denis Duchesne, president of PSA China.
This is the first time for Peugeot to unveil ambitious plan for the Chinese market since Duchesne took his new position in June this year after a handful of overseas car makers have already positioned themselves in the world’s second largest auto market, earning hefty profits.
The car maker plans to double production capacity at its manufacturing facility in Wuhan, central China, to 400,000 units by 2009, which would further expand to 600,000 by 2012.
A third plant is also in the plans with Dongfeng Motor to be built later to meet the growing market demand in China.
It also plans to develop 12 new models in China by 2010 in order to expand product portfolio to attract first time buyers.
The aggressive plans for the Chinese market follow its worldwide restructuring plan to improve profitability especially in emerging markets including China, Russia and South America.
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