PARIS (Bloomberg) – PSA/Peugeot-Citroen SA aims to make progress this year toward achieving half its sales outside Europe as the 408 sedan helps raise deliveries in China.
The Chinese market will “maintain double-digit” percentage growth in 2011, PSA said. Introduced last April, the 408 is the French carmaker's first model designed specifically for China.
The automaker posted 2010 growth from overseas markets, “with a large proportion of our sales now generated outside Europe,” CEO Philippe Varin said in a statement on Thursday. PSA's deliveries last year rose 13 percent to 3.6 million vehicles, Varin said Jan. 6.
China sales surge
Varin has pledged to reduce PSA's dependence on Europe, whose share of sales fell to 61 percent last year from more than two-thirds in 2009, according to the company. China sales surged 38 percent to 375,600 vehicles last year, Latin America posted a 27 percent jump and Russia advanced 37 percent, compared with a 1.7 percent gain in Europe to 2.2 million units.
The automaker, which assembles vehicles in partnership with Dongfeng, expects to reach an agreement in the first quarter on a second Chinese joint venture announced with Changan Automobile Group Co., Varin said last week.
Rival Volkswagen AG, Europe's largest carmaker, is also expanding in China by adding production capacity.
The Latin American market will continue growing “at a more moderate pace” in 2011, while Russia's economic recovery and government sales subsidies will help the market return to “near pre-recession demand levels,” PSA said.