Groupe PSA has big plans afoot for the ASEAN market, and it will incorporate an SUV-centric product offensive. The French automotive group of brands has sealed a joint venture partnership for this year, with plant operations in Vietnam set for commencement in 2018.
Previously, we reported in 2015 that a Dongfeng-PSA joint venture Dongfeng Peugeot-Citroen Automobile Limited (DPCA) was set to begin production of its cars in Vietnam. The Dongfeng-PSA joint venture targeted a sales volume of 70,000 units in the year 2020, according to a statement by Dongfeng-PSA then.
Back in 2010, Peugeot made Malaysia its right-hand-drive production hub via its partner Naza, which set up its manufacturing plant in Gurun, Kedah for the assembly of models such as the Peugeot 408 sedan. Groupe PSA’s move into Vietnam could signal a move away from Peugeot’s assembly presence in Gurun, Kedah, which currently also assembles the Peugeot 408, Citroen DS 4 and DS 5.
Recently, the PSA Group was also in the running to form a strategic partnership with Proton, a move which would have granted the former access to the Malaysian carmaker’s Tanjung Malim plant. Had it gone through, it was said that PSA planned to use Proton’s underutilised facilities as its ASEAN production and export base. Ultimately, however, Proton formed a partnership with China’s Zhejiang Geely instead.
GALLERY: Citroen C5 Aircross