PSA outlines China strategy, aiming to take 7% of Chinese market

Shanghai. October 29 (Gasgoo.com) PSA aims to sell over one million vehicles in Chinese market and to take 7 percent of Chinese market by 2015, said Christian Streiff, CEO of PSA Peugeot Citroen.

“Last year, we sold 201,318 cars in Chinese market and we held 4 percent of Chinese automobile market,” Streiff told a group of reporters at the 5^th Annual China Automotive Industry Forum in Shanghai today.
 
“Our goal is to sell 300,000 vehicles in Chinese market in 2008 and 450,000 vehicles in 2009,” Streiff added. “But the growth of our market share will also depend on the changes in Chinese market situation.”

The capacity of Dongfeng PSA’s first plant in Wuhan will be raised to 300,000 units by 2008. And PSA’s second plant in Wuhan, which will be put into operation by 2009, will have a capacity to produce 150,000 units annually. Citroen C5 will be the first model to be produced at the second plant in Wuhan.

“We are in talks with Dongfeng as to the location of the third plant in China,” Streiff said, but he offered not details about the location or capacity of the planned third plant in China.

Separately, PSA signed a MOU with China’s Hafei Auto Group on June 29 this year. Under the MOU agreement, both sides agreed to start a 50:50 joint venture automaker in Shenzhen next year, where commercial vehicles and minivans will be produced, Streiff said.

Streiff also said his company has a long term plan to sell PSA cars made in China to other parts of Asia-Pacific markets before selling them back to European markets.

In the first nine months this year, Dongfeng PSA sold 150, 308 vehicles in Chinese market, up3.3 percent from one year earlier.