PSA Wants 8 Percent of China by 2016

PSA Peugeot Citroen is looking into ways to expand Chinese operations and thus gain an 8 percent market share in the country by 2016, company officials said. Furthermore, the alliance wants to grow as much as 30 percent in 2010 in China, while the country's auto sector is projected to post an increase of 15 percent.

Peugeot Citroen is currently holding a Chinese market share of 3.4 percent, according to Jean-Marc Gales, head of the Peugeot and Citroen brands.

In short terms, the easiest way for PSA to reach its goal is to launch several new models, besides the 408 sedan introduced a few days ago. A new model is projected to go on sale in approximately one year, but Gales hasn't provided more details on this.

“Next year it’s a car that’s also a sedan and afterwards again a sedan, because the Chinese market is above all sedans,” he told Reuters.

Additionally, PSA is hoping to take full advantage of the joint venture it holds with Dongfeng Motors but, at the same time, is seeking other Chinese partners that could support its expansion.

“We have a very good cooperation with Dongfeng Motors and ambitious growth plans with Dongfeng,” Gales said.

The new Peugeot 408 was launched in China but is supposed to be released in several international markets, according to the parent manufacturer. The car was designed in France but will be manufactured in China at Wuhan. The first units are due to go on sale in China in spring 2010, before the official launch in Latin America.