PSA Peugeot Citroen Receives Official Approval for Its Chinese Joint Venture with Changan

A year after signing a partnership agreement with Changan, PSA Peugeot Citroen announced today that it received official approval of the joint venture from China in which the French group has invested nearly a billion euros.

The National Commission of China Development and Reform Commission (NDRC) has given the green light last week in the creation of “PSA Changan Automobile Co., Ltd.”, a joint venture that combines the China Changan and PSA Peugeot Citroen which will soon have three factories in the Middle Kingdom. This is the second Chinese alliance of the French group which is already partnered with Dongfeng.

Named Capsa, this joint venture, whose capital amounts to 440 million euros equally distributed between the two partners, has received an initial investment of 935 million euros, 440 million euros of equity. Based in Shenzhen, it will produce and market passenger cars and light trucks with the desire to reach 200,000 vehicles and engines per year. In addition, a R & D center for new energy vehicles will also be created.

Between 2015 and 2020, PSA aims to increase its market share in China from 3% to 8%.