Dongfeng Peugeot-Citroën forecasts a 30% growth in 2008

Shanghai. February 5 (Gasgoo.com) - Dongfeng PAS, Peugeot-Citroën’s only joint venture in China, plans to increase vehicle sales in 2008 by more than 30%, senior company official announced yesterday.

 

Liu Weidong, general manager of Dongfeng PSA, said that total sales are expected to reach 280,000 units in 2008, with Citroën projected sales of 150,000 this year.

 

The executive said Dongfeng PSA plans to launch 5 new models in the Chinese market this year. Two of the models, redesigned Elysee and Peugeot 307 hatchback, will be launched in April, while Citroen C4, Citroen C5 and Peugeot 207 will go on sale by the end of this year.

 

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.

 

Dongfeng PSA is also considering a third plant in China, but no decision has been made on its location. Sources say it could be either in Wuhan or Hangzhou.

 

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 at the 5th Annual China Automotive Industry Forum in Shanghai last November.
 
"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 dynamics in Chinese market.”

 

Last year, Dongfeng PSA sold 207,255 vehicles in Chinese market, up 3 percent from one year earlier. Not only is this growth rate much lower than a projected growth rate of 30 percent, but also much lower than the industry’s average growth rate of 22 percent.