Dongfeng Peugeot Citroen, the joint venture of Dongfeng Motor and PSA, has reported a 85% jump in first-half revenues from a year ago to 17.85 billion yuan, or 2.63 billion US dollars. New vehicles sales in the first six months reached 175,000 units, up 49% year-on-year.
Citroen H1 sales increased 62.37% from year-earlier level to 106,700 units. Peugeot gained at a much lower pace, delivering 68,400 units in the first half, 32.69% more than a year ago.
Although growing faster than the overall industry (China H1 auto sales increased 30.4% year-on-year according to China Automotive Technology and Research Center), Dongfeng PSA is likely to fall short of its goal of selling 375,000 to 400,000 units in the whole year of 2010.
Last year, PSA sold 272,000 cars in China, taking mere 2% of the market. Philippe Varin, its CEO, wants to increase the market share to 8% by 2020, a tall order for many. Striving towards that goal, PSA signed an agreement with Chang’an Auto two days ago to form a new China venture, which has a planned production capacity of 200,000 vehicles a year.