PARIS -- PSA Group may lift its forecast for the size of the European car market this year when it publishes half-year results, CEO Carlos Tavares said.
"The European market keeps surprising us in a pleasant way," Tavares said on the sidelines of a conference in Paris. "We will probably update our forecast in the half-year results."
The group, which is due to publish interim results July 27, already raised its forecast last month to 4 percent growth in demand in the European car market this year.
Tavares aims to make PSA the world's most efficient carmaker with is latest Push to Pass business plan. Under his previous Back in the Race plan, PSA posted a 1.2-billion-euro profit last year after losing more than 8 billion euros between 2012 and 2014.
PSA is benefiting from a rebounding Europe, especially in southern European countries where the company is strong and where pent-up demand and higher consumer confidence are boosting sales.
Models such as the Peugeot 308 compact hatchback and Citroen C4 Picasso minivan also have helped to increase PSA's sales. Through April, the automaker's volume rose 5.2 percent in EU and EFTA countries in a total market up 9 percent.
Earlier this week Les Echos reported that the French government is weighing a possible sale of part or all of its 14 percent stake in PSA as it seeks to fund cash injections for troubled nuclear group Areva and state-owned power giant EDF.
Automotive News Europe contributed to this report