Dongfeng-PSA venture expects strong sales, pursues aggressive growth
To ease future production bottlenecks, PSA Peugeot Citroen plans to more than double its Chinese joint venture's annual production capacity to 1.5 million vehicles by 2020 from 600,000 units today.
Dongfeng Peugeot Citroen Automobile Co., the French automaker's 50-50 joint venture with Dongfeng Motor Corp., has enjoyed solid sales growth this year.
In the first four months, the partnership sold 225,226 Peugeot and Citroen vehicles, up 20 percent from a year earlier.
The company expects to sell 650,000 vehicles this year, up from 550,000 vehicles in 2013. Its sales target for 2015 is 800,000 vehicles.
But the venture's three assembly plants in the central China city of Wuhan have annual capacity of only 600,000 vehicles.
So the company will expand its plants' capacity. The venture will double the annual capacity of its second plant in Wuhan to 300,000 vehicles. Dongfeng Peugeot said it also plans to build a fourth assembly plant, without disclosing further details.
In March, Dongfeng agreed to invest 800 million euros (6.8 billion yuan) for a 14 percent stake in PSA to ease the French carmaker's financial troubles.
In China, PSA also has a partnership with Chongqing Changan Automobile Co. in the south China city of Shenzhen that produces Citroen DS cars.
In the first four months, the partnership sold 225,226 Peugeot and Citroen vehicles, up 20 percent from a year earlier.
The company expects to sell 650,000 vehicles this year, up from 550,000 vehicles in 2013. Its sales target for 2015 is 800,000 vehicles.
But the venture's three assembly plants in the central China city of Wuhan have annual capacity of only 600,000 vehicles.
So the company will expand its plants' capacity. The venture will double the annual capacity of its second plant in Wuhan to 300,000 vehicles. Dongfeng Peugeot said it also plans to build a fourth assembly plant, without disclosing further details.
In March, Dongfeng agreed to invest 800 million euros (6.8 billion yuan) for a 14 percent stake in PSA to ease the French carmaker's financial troubles.
In China, PSA also has a partnership with Chongqing Changan Automobile Co. in the south China city of Shenzhen that produces Citroen DS cars.
