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Dongfeng Peugeot Citroen Automobile Company Ltd, the French car maker's Chinese venture with Dongfeng Motor Corporation, said it will produce and sell over 30 percent more vehicles this year as it rolls out new models and expands in the fast growing market.

Both production and sales are expected to reach a record 280,000 vehicles, including 150,000 Citroen cars and 130,000 Peugeot cars, company general manager Liu Weidong said.

The 2008 figures would represent an increase of 31.5 percent in production and an increase of 35.1 percent in sales year on year.

The company, based in the central Chinese city of Wuhan, was the 10th largest sedan producer last year, with sales of 207,300 units, according to data from the China Association of Automobile Manufacturers.

The company would launch five new models this year, said Liu, adding that its costs would be reduced by more than one billion yuan ($138.9 million).

Its production capacity would rise to 450,000 vehicles a year after construction of a new Wuhan plant, with annual capacity of 150,000 vehicles, is completed in 2009.

French car maker PSA Peugeot Citroen is expected to produce some high-end models in the new plant, including the new Citroen C5 model and possibly the C6 and Peugeot 607.

Dongfeng Motor, China's third largest automotive group after Shanghai Automotive Industry Corp and FAW, also runs joint ventures with Japan's Nissan and Honda.