PSA Peugeot Citroen’s China venture is on track with import of DS models

Article by Christian Andrei, on February 17, 2012

Changan PSA Automobile (CAPSA), the car venture of PSA Peugeot Citroen in southern China, has disclosed that they are on track with their plan to introduce the DS models in the country in the second quarter. This statement dismisses a media report that stated otherwise. CAPSA intends to establish 16 dealership outlets in the country initially and 13 are currently being constructed, the venture revealed.

The company further disclosed that it will then increase the number of outlets by 100% by the end of 2012 in 20 major cities such as Guangzhou, Shanghai and Beijing.

Unnamed executives have been cited by the Shanghai Securities News as saying that CAPSA might have to delay its plan to sell imported DS models because it was having a difficult time in searching for dealers who are willing to handle the brand due to the conditions associated with the construction of the new outlets. CAPSA, a venture with China Changan Automobile Group, is the French automaker's second automobile venture in China.

PSA also manufactures vehicles in partnership with Dongfeng Motor Group Co Ltd. In 2011, the Dongfeng venture achieved sales of 404,139 units, compared with General Motors Co.'s annual tally of 2.56 million in China and Volkswagen AG's 2.26 million.

Also last year, Citroen inked an agreement with Changan to manufacture the DS5 luxury SUV in China at a 200,000-unit capacity facility in Shenzhen. Initially however, the DS5 will be imported together with the DS3 and DS4.

Topics: psa, citroen, peugeot, china

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