New Peugeot model aims to reverse China fortunes

That's because it's a midsize Sedan (Saloon), a category that remains extremely popular in China, but is in decline in Europe.

The New Peugeot 508 is presented during the press day at the 88th Geneva International Motor Show in Geneva, Switzerland, March 7, 2018. [Photo: IC]

The focus of Peugeot on China comes at a turbulent time for parent company PSA in what has fast become the world's most important auto market.

The news comes just a month after we reported that Citroen sales in China fell by an astonishing 47.3 percent in 2017.

That was according to specialist publication Autocar, which reported that the company had been increasingly reliant on sales in China after the collapse of the European car market in 2012.

Arguably, Citroen had the wrong model line-up for China's dynamic car market. Whilst Chinese consumers have been showing increasing interest in electric cars, especially, and also mid-size SUVs, Citroen has been offering a more traditional range of hatchbacks, saloons and estates.

Like sister company Peugeot, Citroen has also been gearing new models towards the Chinese market, including the new C5 Aircross SUV.