(Yicai Global) Jan. 15 -- Major carmakers Chongqing Changan Automobile Co. and PSA Peugeot Citroen SA will invest CNY3.6 billion (USD558 million) in premium car joint venture DS Automobiles, to develop one new car model annually from this year.
The Shenzhen-based brand will also develop new technologies related to pure-electric and plug-in hybrid-electric vehicles, Changan Automobile said in a press briefing on Friday.
The two parties will invest equal amounts of the total investment, with the currently 50-50 shareholder makeup remaining the same.
The brand's headquarters will become responsible for operations and export services in all Asia-Pacific regions including India as well as handling matters related to China.
Changan PSA was founded in 2011 with capital of CNY4 billion. The joint venture's plans see its next move as improving the DS series in China. However, the DS range has underperformed so far, cnstock.com reported. The joint venture only sold about 23,000 units in 2014 and less than 24,500 in 2015, data showed, with sales falling to around 16,100 in 2016. The two firms need to put together an agreement to turn around declining DS car sales, an industry researcher said.