PSA Peugeot Citroen and Changan Automobiles have announced the finalization of a 50-50 JV in China, financed by an initial investment of 8.4 billion Yuan (RM4 billion).. First on their list is the introduction of the C3-based DS3 line up. The first vehicle is set to be launched in the second half of 2012.

The tie up will see the development of cars and light commercial vehicles with an initial annual production capacity of 200,000 vehicles and engines at Shenzhen. The new factory will be running two lines, which will include the renovation of an existing production line and the addition of a second line. There are also plans for a new R&D centre to be built.

Apart from this new joint venture, PSA has a partnership with Dongfeng Motor Group Co to build Peugeot cars such as Peugeot 408 (which is somewhat like a 308 Sedan) and also Citroen C5 sedans. It looks like the rest of the Citroen line-up will be taken care by the Changan JV.