PSA Peugeot Citroen's joint venture with China's Dongfeng Motor Corporation is set to triple production to 250,000 vehicles by 2006, according to venture general manager Liu Weidong.

The JV has already seen production lift to 100,000 vehicles on the back of rising demand fuelled by rising incomes, lower import tariffs and the widespread availability of new economy models.

Dongfeng Citroen, which now makes the Fukang, Elysee and Picasso models, would introduce the Xsara model this year. This is expected to cost between 150,000 yuan (£11,200) and 200,000 yuan (£14929) and be powered by a 2.0-litre engine.