PSA said it was acquiring a controlling interest in Longstar to further expand its spare parts business in China.
Longstar is a regional automotive parts wholesaler based in Fujian Province.
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PSA said it would contribute to enlarging the group's geographical coverage with its other distributors Jian Xin based in the Shanghai region and UAP expanding from Shandong.
With two master warehouses and 40 hubs, Longstar distributes 10,000 parts from 18 international suppliers to 4,000 independent repairers.
PSA Aftermarket's multi-brand strategy, part of the Push to Pass strategic plan, aims to meet all customers' aftersales needs worldwide, regardless of their purchasing power or the make and age of their vehicles. This strategy is based on a wide multi-brand parts offering and a multi-brand repair network, Euro Repar Car Service.
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Adding Longstar gives the group access to a competitive, efficient distribution system and it aims to accelerate growth in sales of multi-brand parts, particularly of the Eurorepar range which in China already includes 17 product families covering 55% of the needs of independent garages.
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By GlobalDataThrough its existing customer base, Longstar will help expand the Euro Repar Car Service network in China which consists of 480 repair shops after just 18 months. With 4,000 workshops expected by 2023, China will be the biggest contributor to the worldwide deployment of the network which is expected to have 10,000 shops by that time.
Carlos Gomes, PSA's China and ASEAN head, said: "We areon the offensive in China, not only for new car sales, but for all Push to Pass objectives. The aftermarket is one of our successes in China and this third initiative will give us the opportunity to accelerate this success."
Christophe Musy, head of PSA Aftermarket, added: "China will soon be the world's biggest aftersales market and we have set ourselves very high ambitions there which is why we're already securing strong market positions and ensuring wide geographical coverage."
