PSA targets 50% of sales outside Europe (China, Latin America, Russia) by 2015
Starts joint venture with Changan Automobile in China, will build a 300,000-unit plant in India
PSA's global sales rose 13% from 2009 to an all-time high of 3.602 million vehicles. Sales remained low at 1.7% growth in Europe but increased significantly in non-European markets such as China, Latin America and Russia. As a result, sales outside Europe rose from 32% to 39%.
PSA has a target to generate 50% of sales outside Europe by 2015 and is expanding businesses in emerging markets toward that goal. It is strengthening a joint venture with Dongfeng Motor in China and will start a new joint venture with Changan Automobile. PSA will re-enter the Indian market and build its own plant there with an annual capacity of 300,000 vehicles.
PSA will increase the number of high-end models under Peugeot and Citroen brands characterized by high quality and added values that currently account for small portions in its line-up. In this way, PSA plans to enhance brand images while increasing profitability.
Regarding emissions reduction plans, PSA has a target to sell one million vehicles in 2012 having CO2 emissions of 120g/km or less. It will introduce a diesel hybrid car, Peugeot 3008 HYbrid4, in the second half of 2011.
PSA's revenues in 2010 rose 15.8% to 56,061 million euros and operating income improved from a loss of 689 million euros in 2009 to 1,796 million euros in income. The Group's Automotive Division is operating under the Performance Plan which has led to an improvement of recurring operating income worth 1,464 million euros ahead of 1,100 million euros target.
PSA predicts while 2011 will remain challenging in Europe, sales outside Europe will increase. PSA further predicts the operating income of the Automotive Division will increase from 2010 as the effect of the Performance Plan will more than offset the soaring raw material and input costs.