PSA and their Chinese partner Dongfeng Motor Group have revealed details about their third plant in China. Construction will start at the end of this year. Reportedly, Dongfeng and PSA will each launch a new model in China every year, expecting to raise the joint venture’s share in the Chinese market over two or three years to 5% from the current 3.5%. By 2015, PSA will import 12 new models into China. Apart from that, PSA have started their research and development in global small cars, aiming to benefit from emerging markets like China and Latin America.
Earlier this year, PSA resolved to accelerate their expansion in China, now the world’s largest auto market. On May 4, they signed an initial agreement with Changan Automotive Group to form a 50-50 vehicle manufacturing venture, PSA’s second JV in China.
Later, PSA established Asian headquarters in Shanghai and set a target to sell two million vehicles annually in China by 2020, with their market share to grow to 10%.
PSA Peugeot aim to sell about 400,000 cars in China this year, approaching the annual capacity of 450,000 units of the current two facilities they operate with Dongfeng Motor in Wuhan, central China.
