Gasgoo.com (Shanghai September 14) - The new Changan PSA joint venture will aim to increase domestic production rate of its Citroën DS5 to 50 percent by 2013, JV officials told the Beijing Youth Daily earlier this week.

According to Eric Apode, French planning group director, the JV had already sent applications to the National Development and Reform Commission regarding its plans to sell the imported DS4 and DS5 (pictured) cars in the first half of next year. Changan PSA will then begin selling the DS3 in the latter half of the year. In 2013, the JV plans to begin producing the DS5 in Shenzhen, Guangdong. Changan PSA plans to invest 8.4 billion yuan ($1.31b) in the project, which has a project annual production capability of 200,000 vehicles and 200,000 engines.

The luxury car market in China grew 33.5 percent in the first half of 2011. According to Mr. Apode, following intensive market research, Changan PSA believes that demand for high-class vehicles is on the rise in China. He believes that this is a great opportunity for the manufacturer. However, the three DS models destined for China are all hatchbacks, which may limit their overall appeal.

In order to maximize sales performance for its new vehicles, Changan PSA plans to open 25 new 4S dealerships next year.