The PSA Peugeot Citroen Group, along with Dongfeng Motor Corporation, is all set to begin production of its cars in Vietnam under the pair’s joint venture (JV), Dongfeng Peugeot-Citroen Automobile Limited (DPCA). As understood by Automotive News Europe, the joint venture has already commenced production of compact models in Malaysia in cooperation with the Naza Group.
Said venture will be executed in conjunction with Vietnam-based THACO Group, as reported by China’s Xinhua news agency. When assembly begins later this year, the operation will aim to market a total of 8,700 units in the ASEAN region – a sales target of 70,000 units comprised of both locally-assembled and imported models has been pegged for the year 2020, according to a statement issued by Dongfeng-PSA.
Aside from that, the joint venture will also target to sell one and a half million vehicles annually, beginning from 2020. In addition, the Chinese JV is reportedly mulling the idea of establishing a new company to lead sales in the Asia-Pacific region, with eyes on Southeast Asia in particular.
The move comes about as a result of the recent slump in sales recorded by the PSA Peugeot Citroen Group on home turf. As a result, a capital expansion plan worth €3 billion (RM11.88 billion) was executed between PSA and Dongfeng Motor, providing a much needed shot of adrenaline to help turn the marque’s fortunes around. Additionally, the French carmaker was also buoyed by solid performance in the Chinese market.
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Tahniah to Tun Advisor the father of Vietnam automotive industry.
Why vietnam?
Its a small auto market and not a significant or a mature production hub AFAIK. Why not thailand?
Currently, PSA only significant market, or the only market in SEA is obviously our beloved country. They are ‘almost non presence’ in other SEA countries. Hard to see how they going to break into the rest as they dont have the right product mix for these countries.
Investment-wise, Malaysia lose out again as this is clearly as long-term decision.
The only good side of this story is now we have the first clue as to what is the JV company plan for SEA since PSA agreed to ‘give’ SEA market to the JV company when DongFeng agreed to buy 14% of PSA shares a few years back.
then what is this? “BAIC to make Malaysia an EV hub for ASEAN” http://paultan.org/2015/05/15/baic-to-make-malaysia-an-ev-hub-for-asean-report/
Why Vietnam? Vietnam was a former French colony until 1954.
Perhaps, with the French connection, the anti Chinese sentiment is subdued since French influence is still strong there
https://www.justlanded.com/english/Vietnam/Vietnam-Guide/Culture/History
With the guises of even the French badge perhaps, chinese is making in road in Vietnam.
Chinese are very patient, the wheel is already set in motion, they are not in hurry, just look at all the story with Geely Volvo, (st palnt in USA 2018) MG SAIC, set foot in Thailand already and now may be Malaysia…
http://www.thanhniennews.com/business/carmaker-peugeot-denies-report-on-production-plan-in-vietnam-43818.html
A representative from French automaker PSA Peugeot Citroen has rejected a report that the company and its Chinese partner Dongfeng Motor Group will open an assembly plant in Vietnam.
Lionel Faugeres, Peugeot’s general director for Southeast Asia rejected the information, recently reported by Chinese media, in an email on Sunday.