Dongfeng Peugeot's first Chinese manufactured SUV, the Peugeot 3008, will make its debut at the upcoming Guangzhou International Automobile Industry Exhibition.

The 3008 will be powered by a 1.6-litre turbocharged high pressure engine that will play a key part in the joint venture's 'E strategy' which will focus on improving efficiency, economy and environmental friendliness of its vehicles, China Daily said.

The engine, which was developed in cooperation with BMW, has won the International 1.4-litre to 1.8-litre engine of the year award for six years running. It powers a variety of Mini, Peugeot and Citroën vehicles. The 3008 mates the engine to a six-speed automated manual transmission.

The 3008 looks set to compete with models such as the Dongfeng Nissan Qashqai and Renault Scénic. The 3008 has been sold in China since late last year as an import, carrying a price tag between CNY246,800 and CNY266,800 (US$38,746-$41,885).

However, due in part to its high price tag, the model's sales failed to meet expectations. Following domestic production, the JV should be able to reduce prices for the SUV.