Peugeot Attempts to Re-enter the Chinese Market Once Again

Just days before unveiling its strategic plan, Stellantis, the French automaker, released a series of announcements. On Friday, Stellantis announced strengthened cooperation with its Chinese partner, Dongfeng Motor. Their joint venture will produce two new Peugeot models tailored for the Chinese market.

Stellantis has confirmed the revival of its joint venture with Dongfeng Automobile. In recent years, this joint venture had fallen into stagnation. According to the press release, both parties will "enhance collaboration by leveraging their scale, expertise, and R&D capabilities within the industry." Specifically, the joint venture—Dongfeng Peugeot Citroën Automobile Co., Ltd. (DPCA)—is expected to begin manufacturing two Peugeot models in Wuhan next year. Both vehicles will be "new energy" cars, meaning fully electric or plug-in hybrid models, with the goal of targeting the Chinese market while also serving as part of Peugeot’s international growth strategy for export.

New Models Unveiled at Beijing Auto Show: SUVs and Sedans

These two new models are likely to draw inspiration from concept cars unveiled by Peugeot just weeks earlier at the Beijing Auto Show. At that time, Peugeot stated these concepts foreshadowed "a series of large sedans and sport utility vehicles (SUVs) produced in China, aimed at the domestic market and destined for export."

Currently, Dongfeng Peugeot Citroën Automobile Co., Ltd. (DPCA) produces the Peugeot 2008 and 5008 models, along with the Citroën C5X, but these models are primarily exported to Southeast Asia.

Therefore, Peugeot's introduction of new models in the Chinese market comes as something of a surprise, especially considering that Peugeot has nearly disappeared from the Chinese automotive scene. This is particularly notable amid slowing growth in the world’s largest car market, where dozens of automakers are caught in a fierce price war.

However, Stellantis may view this as an opportunity to "test the market" at relatively low cost. As one expert noted: "China sells nearly 25 million vehicles annually; even a small market share can yield substantial sales volume."

An 800 Million Yuan Project

Part of the Peugeot vehicles produced by Dongfeng Peugeot Citroën Automobile Co., Ltd. (DPCA) is expected to be sold outside China, such as in Africa or South America, to more effectively compete against rising Chinese brands.

The newly signed agreement between Stellantis and Dongfeng Motor ultimately confirms the production in China of two plug-in hybrid Jeep models, primarily targeted toward the "international market."

The press release states that funding for the project includes local government subsidies, with a total investment exceeding 8 billion RMB (approximately 1 billion euros), of which Stellantis’ investment is expected to be around 130 million euros.

Last month, during a cooperation forum held in Wuhan between French companies and local enterprises, both sides had already discussed strengthening collaboration. The scope of cooperation might also expand to Europe, as discussions are underway regarding allowing Dongfeng Motor to utilize Stellantis’ factories. Several potential locations have already been identified, including a factory in Rennes, France.

Source: rfi

Original article: toutiao.com/article/1865325728186368/

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