Peugeot, Changan mulls electric, hybrid cars in China

22 November 2011: PSA Peugeot Citroen, Europe’s second-biggest car maker is planning to develop alternative energy vehicles in a venture with Changan Automobile Group Co to meet increasing demand for cars that pollute less. The auto makers will also explore jointly making hybrid and electric vehicles (EV) in China, PSA Peugeot Chief Executive Officer Philippe Varin said on Sunday in Shenzhen, China, where the Paris-based car maker held a ground-breaking ceremony.

The European automaker may join rivals including General Motors Co, Daimler AG and Nissan Motor Co in planning to introduce so-called plug-in hybrid vehicles in China, where government subsidies are driving up demand. Peugeot and Changan will also start making the luxury Citroen DS 5 model in Shenzhen starting in 2013 as demand at home weakens.

Source: Business Standard