PSA Peugeot Citroen expects its sales in China to jump by nearly one-third in 2007 as new models attract customers.


The car maker is on target to sell more than 200,000 vehicles in China this year, an increase of more than 40% from 2005, and wants to move at least 260,000 in 2007, its China chief told Reuters in an interview.


“Sales could hopefully top 300,000 units by 2008, as we roll out more models,” Yves Boutin reportedly said.


Peugeot, which commands less than 5% of the Chinese market, sold 140,000 vehicles in 2005, up 53% from 2004, when a general market slowdown dampened sales, the news agency said. The French company’s sales were dwarfed by the 564,300 units Volkswagen moved last year through the German firm’s two China ventures.


But Boutin reportedly forecast a “significant” increase in Peugeot’s market share as it rolls out more models a compact Citroen is slated for before the end of the year, followed by up to six models between 2007 and 2009 – given the popularity of the Peugeot 206 and [Citroen C4 hatchback-based] C-Triomphe [sedan], which went on sale earlier this year.

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About 3,500 Peugeot 206s have been sold every month since its China debut in January, and 18,000 orders have been placed for the C-Triomphe sedan, launched in late April, Boutin, who took the helm of the China operation in 2005, told Reuters.


Peugeot, in the process of doubling the capacity of its central China plant to 300,000 vehicles per year by 2008, also wants to add a new facility, the report noted.



“The problem for us is not marketing our products, but to have more capacity,” Boutin told Reuters.


Details of the new plant would be announced in July, he said in the interview without elaborating, though other company executives told Reuters last April that the initial capacity of the facility could be about 150,000 vehicles per year.


The report said Peugeot imported about 1,000 vehicles to China in 2005 and that Boutin believed imports will grow as China further cuts tariffs for imported vehicles next month, in compliance with its commitments to the World Trade Organisation.


“There is certainly a market for imported cars,” he told Reuters, adding that his company might bring in luxury models such as the Peugeot 407 and Citroen C6 some day.