China: PSA’s local venture ups its sales goal image

Thanks to strong demand registered throughout the first six months of the year, the local joint venture between PSA Peugeot Citroen and Dongfeng Motor Group has increased the full year’s sales target.

The French carmaker, which is now in a broad alliance with the Chinese partner, thanks to a capital investment from Dongfeng, has decided to set the bar for local sales in 2014 by another 50,000 vehicles. The ailing European carmaker desperately needs the best performance it can get in the world’s largest automotive market after its dependence to the core region made it falter to the brink of collapse as the European demand reached a two decade low.

“Based on a strong performance in the first half and good prospects for the second half, we are adjusting the full-year target from over 650,000 to 700,000 vehicles,” said Dongfeng Peugeot Citroen Automobile Co Ltd in a released statement.

The joint venture has so far delivered in the January-June period 343,170 cars, which is a 24% increase over the same period figures in 2013 and almost double the 12.7% growth accounted by the overall auto market in China so far.

Dongfeng Peugeot have officially announced last week they intend to begin construction of a fourth manufacturing facility in China, in a move that ultimately aims to make a three fold increase in annual sales by 2020. So far, the company has three plants in China, which work at full production capacity, churning out 2,600 vehicles a day.

Via Reuters