TREMERY, France -- PSA Group will start assembling batteries for its hybrid and electric cars at its plant in Trnava, Slovakia, and later at its plant in Vigo, Spain.
The company also expects to produce batteries at some of its other factories as sales of electric cars pick up, Peugeot's industrial director, Yann Vincent, said on Friday at PSA's engine plant here.
PSA currently buys batteries from South Korean company LG and China's CATL.
PSA expects rising demand for electric and hybrid cars and for vehicles with automatic gearboxes to offset falling demand for diesel and manual gearbox cars, Vincent said.
Peugeot expects output of engines at Tremery will fall to 1.7 million this year, down from 1.8 million last year due to falling demand for diesel cars
PSA is electrifying the lineups of its Peugeot, Citroen and DS brands with models such as the e-208, a battery-powered version of its new Peugeot 208 small hatchback.