Peugeot Citroen setting up a new plant in China

Peugeot Citroen has started the construction of a massive factory in the inland Chinese city of Wuhan. This is another example of how China is attracting the attention of global automakers.

The company already has an existing plant in this city. And after the construction of this new plant, they would eventually be able to produce 450,000 cars a year.

Peugeot president Jean-Martin Folz said in a statement: “With this second plant we will be at a level with our group’s biggest plants. The development of the Chinese market is so fast that we have to prepare for the future.”

The company has seen sales of 140,000 cars in this market last year and they expect the sales to touch 200,000 units this year.

Zhang Xin, an auto analyst with Guotai Junan Securities in Beijing spoke on this ever expanding auto market in the country: “The markets in Europe and North America have reached saturation point. That’s why they come to China to invest.”

Popularity: 6%