Citroën occupies fourth place in the rankings on the Chinese automotive market. Fielding an extensive range of products adapted to local requirements, the Marque is growing sales continuously on the steadily expanding Chinese market

CITROËN AND CHINA

A pioneer in technology, innovation and marketing, André Citroën quickly developed an interest in China. Citroën made its first appearance in this country through the Croisière Jaune, an Asian expedition that crossed Beijing in 1932. In July 1985, Citroën took part in the first Chinese motor show in Shanghai and signed a delivery contract for 250 CX vehicles. Between 1980 and 1985, Citroën sold more than 1,600 units of the CX and also introduced the Visa to the Chinese market. July 1988 set the scene for Operation Dragon: 140 young people travelled to China and drove more than 4,500 km from Shenzhen to Beijing in a fleet of AXs. Sixty years after the Croisière Jaune, Pierre Lartigue and Michel Périn won the first Paris-Moscow-Beijing rally with their Citroën ZX Rallye Raid.

Steel Dragon”) and Dongfeng Motor Corporation. In December 2002, the cooperation

between PSA Peugeot Citroën and Dongfeng Motor Corporation was further extended with the founding of a new joint-venture: Dongfeng Peugeot Citroën Automobiles (DPCA).
The Citroën brand is devoting considerable efforts to its long-term future in China. A key factor is the implementation of a dense network in continuous development. DPCA has a high-performance final assembly plant in Wuhan with the capacity to produce 150,000 vehicles/year, and a powertrain plant producing engines and gearboxes in Xiang Fan. The plant already produces the ZX Fukang (start-up 1992), the ZX Fukang 988 (start-up 1998), the Xsara Picasso (startup November 2001) and the Elysée (start-up June 2002), and now the 5-door Xsara.
More than 350,000 Citroën vehicles have been produced in China.

A STEADY INCREASE IN CITROËN SALES:

more than 85,000 vehicles sold in 2002

In the first two months of 2003, Citroën reported a 136% increase in sales in China on a strongly growing market. A total 16,900 vehicles have been sold.

billion inhabitants, 20% of the world’s population), it is growing continuously. Over the past ten years, the market has expanded by around 15% on average on an annual basis with a “ sales explosion ” in 2002.

25%) and import quotas will be gradually phased out between now and 2006. Customs duties have already fallen to 38.2% in 2003.

The 2001-2005 five-year plan reflects the Chinese government’s determination to develop the automotive industry, which is one of the pillars of the national economy. As part of this, the authorities have initiated a policy to develop the road infrastructure and so make travelling easier in key development areas (on the east coast), while also opening up a number of less developed regions located more to the west. Even though China has the world’s third biggest road network with 1.4 million km of roads, overall coverage of the country remains low. Major projects are under way, such as the construction of a motorway between the two cities of Beijing

and Canton, which are 2,500 km apart.
A rapidly changing market structure

Even though commercial vehicles continue to dominate the automotive market (55%), the passenger car market is expanding at a rapid pace. Access to private cars is one of the key trends in this sector, and it has been furthered by the emergence of new types of financing. At end 2002, the passenger car market in China totalled 1.1 million vehicles, an increase of 53% on 2001. The market is expected to continue growing over the coming years.

The Citroën brand is devoting considerable efforts to its long-term future in China. The implementation of an extremely dense network is a key factor. The network comprises more than 450 points of customer contact. Outlets in more than 250 cities

sell and service Citroën vehicles. The network is coordinated by the twenty regional offices of Dongfeng Citroën Automobile Distribution (DCAD).
Methods and training

In 1996, Citroën developed a complete sales network applying its recommended methods. Initiatives set in place to develop the network and raise professional standards, place the focus squarely on quality. At end 2001, 110 customer contact points satisfied the 3S standards (sales, services, spare parts), which are based on European practices.

The quality process was further developed in 2002 with the implementation of the new “Golden Dragon” charter corresponding to the quality standards of Citroën’s International Division. At end 2002, 45 dealers satisfied the criteria laid down by the “Golden Dragon” charter. The quality of after-sales service is another point of emphasis. As part of a cooperation agreement between the French ministry of education and the municipality of Beijing, a Citroën technical training centre was inaugurated in 1999 with a view to training around 400 people a year. An ambitious development plan will be put in place in 2003 for sales training within the network.
VEHICLES MANUFACTURED IN CHINA
Citroën offers an extensive range of products adapted to the local market. A number of technical modifications are necessary to adapt vehicles to Chinese driving conditions. These include: increased ground clearance, modified suspension, gearbox protection, and adaptation to local fuel. The range has now been extended with the arrival of the Xsara 5-door model.
Citroën Xsara 5-door saloon: a new vehicle targeting the high end of the Chinese market. The Xsara continues to enjoy unflagging success around the world, with sales of 1,400,000 Xsara saloons, coupes and estates. Citroën is launching the 5-door

Xsara on the Chinese market in spring 2003. Targeting the high end of the Chinese market, this vehicle offers a spacious and functional interior. Exceptional levels of comfort and safety make it one of the best saloons on its segment. ABS with electronic brakeforce distribution guarantees effective braking in all circumstances. The vehicle has undergone a number of technical modifications so that it can withstand particularly severe local road and weather conditions and run on the fuel sold in China.

The Xsara sets itself apart with an impressive list of equipment provided for on-board

comfort and well-being. The digital multiplex wiring brings the driver a range of much appreciated functions, including radio volume adjusted to vehicle speed and an

excess speed warning. The Xsara is the best equipped saloon on its segment. Functions include central locking with plip control and a function to locate the vehicle in a car park, power rearview mirrors, ergonomic steeringwheel controls and an onboard computer. The Xsara also features a driver’s seat with adjustable height and lumbar support, air conditioning with automatic temperature control and four power windows. It is also equipped with a radio and 6-CD stacker as standard.

Illustrating its top-of-the-range positioning, the Xsara features a wood trim and special upholstery with a leather version in a light colour scheme featuring a sunroof as standard.

The vehicle is also fitted with 15-inch alloy wheels.

Generous stowage space (including bins in the rear doors) simplifies life on board. The modularity (60/40 split-fold rear seat) and boot volume (from 408 litres under the parcel shelf to 1,190 dm³) are among the best in the segment.
Powerful engines

In order to provide the power and engine capacity required by Chinese customers, the Xsara is available in four versions based on the 2.0i 16V engine developing 138 bhp. In order to satisfy as many customers as possible, the Xsara will be available from launch with a manual 5-speed gearbox, and autoadaptive, automatic gearbox. Citroën has always been highly attentive to environmental protection in China.

Reflecting this, all Xsaras will satisfy Euro 3 emission control standards at launch, even though this standard becomes applicable only in 2008.
Citroën Xsara Picasso: a modern and innovative high-spec people-carrier

Presented at the Beijing Motor Show in 2000 and at Shanghai in 2001, the Xsara Picasso people-carrier is positioned at the top end of the range in China. Production began at Wuhan in November 2001. The PSA Peugeot Citroën plant in Vigo (Spain) sends Xsara Picasso body shells in knocked-down form for final assembly in China. The model is equipped with a choice of two petrol engines: 1.6i and 2.0i, assembled at Xiang Fan. Attractive, roomy and modern, this car is an innovator on the Chinese market. Intended as a private vehicle for well-to-do private customers, the Xsara Picasso is pursuing a successful career on the growing people-carrier market.

The Citroën Elysée is a new notchback saloon designed in China and which draws upon the experience acquired with the ZX Fukang as enjoyed considerable success since its market launch in June 2002. Its elegance, modern design, generous equipment and attractive price positioning make it a particularly appealing product. The Elysée is now the “spearhead” of the Citroën range. It extends the offering on the M1 segment, while setting itself apart from the other Citroën vehicles that are already available.

In January, an Elysée VIP limousine was presented to an audience of professional customers. This is a car that is particularly well suited to the needs of this customer base (government offices, companies). With its 2,700 mm wheelbase, the Elysée VIP boasts rear space worthy of an executive saloon. Naturally, the equipment is tailored to the VIP customer base. On 9 March 2003, a new version of the Elysée, the Elysée VTS, was presented to the press in Beijing.

Citroën is responding to the expectations of Chinese customers who appreciate novelty, power and performance. Featuring highspec equipment (brushed aluminium fascia, chrome-plated gear lever knob, leather steering wheel, aluminium wheels, new trim, new body colour and new rear lights), this version is equipped with the new 1.6i 16V engine assembled in the Xiang Fan plant. This new version is expected to total 15% of sales of the Elysée model, which is enjoying considerable success.

A full 37,800 units have already been sold, nine months after the launch. At the same time, the ZX range has been repositioned, notably with the arrival of a family model selling for less than RMB 100,000 (approximately €11,236).

When Dongfeng Citroën Automobile Company (DCAC) was set up, it decided to begin operations with a modern product.It devoted its efforts to the launch of the ZX Fukang – the first hatchback on the M1 segment – in September 1992.

This model was the first to satisfy the pollution control standards applicable in Beijing

(Euro 1 from January 1999).

Baptised Fukang (“prosperity and health”), this vehicle is very much appreciated for its reliability and quality. It features a wide range of comfort and safety equipment: catalytic converter, airbags, air conditioning, leather interior and seats and an automatic gearbox (the only auto-adaptive gearbox on the local market). Depending on the version, the ZX Fukang is equipped with either the 1.4i or 1.6i petrol engine manufactured at Xiang Fan.
The Citroën ZX Fukang 988: specially developed for the Chinese market

The ZX Fukang 988 was launched in August 1998. It is a notchback vehicle designed specially to meet the requirements of Chinese buyers. A number of technical characteristics, such as ground clearance, have been optimised in order to take account of the road network in the country’s less urbanised regions.

In 2001, Citroën launched the C5, with the 2.0i and 3.0i petrol engines. These high-performance engines contribute to the remarkable driving pleasure of the car. Targeting the high end of the market, the C5 saloon combines a reassuringly clear view of the road with superb comfort. The Hydractive 3 suspension of the C5 varies the height of the vehicle as a function of speed. The C5 boasts an array of active and passive safety features that make it a reference in its segment. ABS, electronic brakeforce distribution and emergency braking assistance ensure effective braking. The C5 also features front, side and curtain airbags. The C5 is an innovator in terms of architecture, styling, space and technological content. The defining qualities of this saloon are ergonomic design, easy use, generous equipment and high-spec features.

1932 Croisière Jaune: the China group arrives in Beijing.

delivery contract is signed for 250 units of the CX.

Dongfeng Motor), China’s second biggest truck manufacturer.

from Shenzhen to Beijing in a fleet of AXs.

agreement between the two governments.

jointventure set up by Automobiles Citroën and Dongfeng Motor

Corporation, the company’s objective is to manufacture and sell the

ZX in China.

Sixty years after the Croisière Jaune, Pierre Lartigue and Michel Périn

won the first Paris-Moscow-Beijing rally with their Citroën ZX Rallye

Raid.
1992-1996 Two production plants built at Wuhan and Xiang Fan, in Hubei

province.

Dongfeng Motor Corporation. Jean-Martin Folz, Chairman of PSA

Peugeot Citroën, and Miao Wei, Chairman of Dongfeng Motor

Corporation, sign a memorandum of understanding to reinforce and

accelerate the cooperation between the two groups. The objective is to significantly increase the production and sale of Citroën and

Peugeot brand vehicles, by bringing in the PSA Peugeot Citroën

group as a whole to work alongside its Chinese partner.
June 2002 Tenth anniversary of DCAC. More than 300,000 vehicles have been

produced in China since 1992.

signed on 25 October 2002: Dongfeng Peugeot Citroën Automobiles

(DPCA) is born. To finance the investments necessary for this second

phase, the two groups decide to increase the capital of the joint-

venture to RMB 1 billion (€123 million). PSA Peugeot Citroën

contribute RMB 625 million (€77 million) and Dongfeng

MotorCorporation RMB 375 million (€46 million). This gives the two

groups equal stakes (32%) in the capital of the joint venture, the

rest being held by Chinese and French banks. Under the terms of the

agreement, PSA Peugeot Citroën and Dongfeng Motor Corporation

will become sole shareholders at end 2003 on a fifty-fifty basis.

CITROËN AT THE « SHANGHAI AUTO 2003 »
Through its key values of technology, comfort and safety, Citroën is pursuing a course of active development in China, in terms of both its products and its results.
For the «Auto Shanghai 2003», which takes place at the Pudong Exhibition Centre in Shanghai between 20 and 27 April 2002, Citroën is displaying the main products from the range sold in China by DCAD (Dongfeng Citroën Automobile Distribution). Citroën is also presenting its latest vehicles: the C3, the C3 Pluriel and the C8 executive people-carrier. This show also marks the launch of the Citroën Xsara 5-door model on the Chinese market. Also on display is the Xsara WRC, which is currently enjoying great success in the World Rally Championship. The Shanghai show also gives Citroën an opportunity to demonstrate its innovating know-how in onboard telematics.
THE AUTO SHANGHAI 2003: CITROËN

DISPLAYS A RICH AND DIVERSIFIED RANGE
The range displayed by Citroën at the Auto Shanghai 2003 demonstrates once more the importance attached by the Marque to the Chinese market.
The range comprises models manufactured in China by the joint-venture Dongfeng Peugeot Citroën Automobiles (DPCA) and distributed by DCAD, as well as a number of imported models. Citroën is displaying fourteen range models on its stand, of which: 1 ZX Fukang, 2 Xsara Picassos, 3 Xsara saloons, 2.0i 16V Automatic Exclusive, 2 Elysées representing vehicles produced locally, one C5 model: the 2.0i 16V SX Automatic, which is an imported vehicle. The Shanghai Motor Show is also an opportunity for Citroën to present its latest vehicles: the new C3 1.6i SensoDrive, C3 Pluriel 1.6i SensoDrive and C8 SX 2.0i Automatic. Citroën is also displaying a Xsara Coupé 2.0i 16V, VTS. The Xsara WRC, worthy representative of the Marque in the World Rally Championship, is also present on the stand.
Citroën Xsara WRC: leading the manufacturers’ category

in the World Rally Championship

Coinciding with the launch of the 5-door Xsara on the Chinese market, Citroën is turning the spotlight on the Xsara WRC. Worthy representatives of Citroën’s technology, know-how and passion, the Xsara WRCs of Sébastien Loeb-Daniel Elena, Colin McRae-Derek Ringer and Carlos Sainz-Marc Marti made their mark right from the start of the World Rally Championship. With the superb 1-2-3 of the Monte-Carlo Rally and the victory in the Rally of Turkey, Citroën leads the manufacturers’ championship after the first three rallies of the season.

These Coupé models feature particularly dynamic styling with a boot volume equivalent to that of the Xsara saloon (up to 1,190dm³).

The Citroën C3 Pluriel, a unique car with a host of configurations, heralds a new phase in modular vehicle design with its ability to change shape at will. Starting off in the guise of a 3-door saloon, the C3 Pluriel can morph into a C3 Pluriel Panoramic Saloon, a C3 Pluriel Cabriolet, a C3 Pluriel 4-seater Spider or a C3 Pluriel Spider Pick-up. In this way, the C3 Pluriel is able to adapt at will. This original concept attracted great acclaim from visitors at the 2002 Paris Motor Show and 2003 Geneva Motor Show. This vehicle is to be launched in Europe in a few weeks time.

The C3 combines a strong and original personality with elegant styling. The architecture of this user-friendly car places the emphasis on space, accessibility and light. Compact and easy to handle in the city, the C3 is also a strong performer on the open road, thanks to its three petrol engines: 1.1i (61 bhp DIN), 1.4i (75 bhp DIN) and1.6i 16V (110 bhp DIN). It also features the SensoDrive robotised manual gearbox, with the 1.6i 16V engine.

A new executive people-carrier, the Citroën C8 features an exceptional combination of qualities: dynamic exterior styling with a bright, friendly interior that is designed to

meet users’ every need. Offering a range of modern and economical engines, the C8

recently gained a new high-spec model featuring a V6 petrol engine of 208 bhp DIN

mated with a sequentially controlled automatic gearbox. The C8 has established itself

as a reference for life onboard, with sliding, electric side doors, rear seats with an instant anchoring mechanism, a host of stowage compartments and a four-area air-conditioning system with automatic temperature control.

Citroën is displaying a C8 with a video system comprising a DVD player, a fixed overhead screen in front of the rear passenger seats, and an onboard digital terrestrial television receiver. Digital terrestrial television (DTT or DVB-T) makes it possible to show television programmes by means of the screens located at the rear of the vehicle, thus providing a solution to a requirement expressed by customers. In the areas covered, DTT was found to offer satisfactory transmission quality in tests conducted at high speeds. This function rounds out the onboard video offering with the DVD-player.

Citroën is also presenting a Citroën C5 V6 equipped with Bluetooth technology, which

enables wireless links to electronic appliances such as GSM telephones. The Parrot handsfree kit, Bluetooth VH 3000, lets users make a telephone call without picking up the mobile. It manages voice recognition and synthesis, microphone input and also mutes the car radio and vehicle loudspeakers. The DriveBlue kit presented on the Citroën C3 is the latest development in Bluetooth technology. It requires no installation, since it simply plugs into the cigar lighter. The driver can then make telephone calls in safety and comfort, without actually touching the telephone. A wireless link is created between DriveBlue and the telephone. Voice recognition lets users make calls without taking their eyes off the road. DriveBlue operates with all Bluetooth telephones made by leading manufacturers and featuring audio profiles.