China to Overtake France As PSA’s Biggest Market

PSA Peugeot Citroen expects its sales in China to surpass those in France, its home market, by 2015, Bloomberg News reports.

Gregoire Olivier, CEO of the company's Asia unit, tells the news service that PSA aims to boost Chinese sales 22% to 540,000 vehicles this year. Hiking volume in China would help the company reach its goal hiking sales outside Europe from 38% today to 50% by 2015.

Olivier says higher volume this year would be driven by revamped models, a 27% expansion of its dealer network, a new advertising and marketing blitz and the debut of the company's premium DS brand.

But analysts opine it will be difficult for the unknown DS marque to compete with established luxury makes. They note that PSA's least expensive model. the Citroen C2, starts at a relatively pricey 71,800 yuan ($11,400).

PSA and partner Dongfeng Motor Group Co. plan to open their third Chinese assembly plant later this year, thus increasing the joint venture's annual capacity to 750,000 vehicles. Olivier says the French carmaker and its other Chinese partner, Changan Automobile Group, will begin producing the first DS model in Shenzhen in October.