PSA Peugeot Citroën and Dongfeng Motor Group is expanding its industrial plan for joint subsidiary Dongfeng Peugeot Citroën Automobiles (DPCA) to reflect growth in China. Production capacity is being increased, new models added and a new plant is being sought.

After doubling capacity at the Wuhan plant, which is being stepped up to 300,000 units a year in 2008, the DPCA board decided on April 1 to actively search for a new production site. The exact location and schedule for the new facility will be announced within the next few months, PSA says.

DPCA also intends to strengthen its product plan, produced on the two new group platforms used in China since mid-2004, as well as platform 3, which will be introduced by the end of the decade for the production of upper mid-range models. This will eventually enable DPCA to offer a comprehensive range of vehicles, from compact cars to large executive saloons. Production of nine models is scheduled to begin at the Wuhan plant between 2006 and 2009, including three new models this year alone.

In addition to the Peugeot 307, which has been produced on platform 2 since July 2004, and the Peugeot 206, produced on platform 1 since March 2006, production of two new Citroën models will begin this year—the Citroën C-Triomphe (platform 2), unveiled in Shenzhen in February, and later in the year, a new compact Citroën that will increase Wuhan’s range to eight models.

In 2005, DPCA sales rose by 57.5% to 140,400 units from 89,100, in a market that expanded by 24%. The 2006 sales target has been set at over 200,000 units.

In response to strong business growth in China, PSA Peugeot Citroën has created Peugeot Citroën China Automotive Trade Company Limited, a wholly-owned subsidiary that will strengthen the group’s presence in China, while contributing to the development of DPCA. By importing additional Peugeot and Citroën models not produced in China, the new subsidiary will also help to enhance the image of both marques.

See also:

GOLDING’S TAKE: PSA reacts to Chinese burns (03/04/06)