The PSA Peugeot Citroen Group, along with Dongfeng Motor Corporation, is all set to begin production of its cars in Vietnam under the pair's joint venture (JV), Dongfeng Peugeot-Citroen Automobile Limited (DPCA). As understood by Automotive News Europe, the joint venture has already commenced production of compact models in Malaysia in cooperation with the Naza Group.
Said venture will be executed in conjunction with Vietnam-based THACO Group, as reported by China's Xinhua news agency. When assembly begins later this year, the operation will aim to market a total of 8,700 units in the ASEAN region - a sales target of 70,000 units comprised of both locally-assembled and imported models has been pegged for the year 2020, according to a statement issued by Dongfeng-PSA.
Aside from that, the joint venture will also target to sell one and a half million vehicles annually, beginning from 2020. In addition, the Chinese JV is reportedly mulling the idea of establishing a new company to lead sales in the Asia-Pacific region, with eyes on Southeast Asia in particular.
The move comes about as a result of the recent slump in sales recorded by the PSA Peugeot Citroen Group on home turf. As a result, a capital expansion plan worth €3 billion (RM11.88 billion) was executed between PSA and Dongfeng Motor, providing a much needed shot of adrenaline to help turn the marque's fortunes around. Additionally, the French carmaker was also buoyed by solid performance in the Chinese market.
GALLERY: Dongfeng Fengshen L60 (rebadged Peugeot 408)
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