Peugeot plans 10% hike in China output for 2012
PSA Peugeot Citroen predicts its vehicle production in China will rise 10 percent in 2012, up from 400,000 units forecast for this year.
In 2013, the company will add capacity of 300,000 vehicles with the opening of a third assembly plant with Chinese partner Dongfeng Motor Group.
"We don't have a China capacity problem," said Gregoire Olivier, PSA's chief of Asia operations, during a shareholder meeting.
PSA's 50-50 partnership with Dongfeng will produce small cars built on the French automaker's platform 1.
The joint venture aims to increase its share of China's passenger car sales to 5 percent by 2015, up from 3 percent last year.
To expand more quickly in China, PSA established a second joint venture with Chongqing Changan Automobile Co. last July. That venture will build light commercial vehicles and upscale models such as the sporty DS car line.
