French automobiles and motorcycles manufacturer PSA Peugeot Citron has opened a new production plant in Shenzhen, Guangdong province, China, to produce its DS5 vehicles locally.
The new plant will be operated by Changan PSA Automobile (CAPSA), a joint venture between PSA and a Chinese manufacturer China Changan Automobile Group.
It will enable CAPSA to produce 200,000 vehicles annually. The company will also invest RMB500m ($81.6m) in a R&D centre of the joint venture, which has started construction in July 2013.
The company will produce the Chinese version of its DS5 vehicles at this new plant to leverage from the success of the imported DS5, DS4 and DS3 vehicles from PSA by introducing locally produced DS5 vehicles.
Besides, PSA also plans to expand the DS brand's retail network further by opening 18 more outlets by the end of the year in order to cover the main 40 cities in the country. The company operates 34 DS Stores to date.
