French car giant PSA Peugeot Citroen have reported a return to profit in the first half of 2010, driven by new models and strong demand in China.
Net profit came in at 680m euros ($885m; £567m) for the 6 months to the end of June, this is compared with a loss in 2009 of 962m euros, while revenues increased by 21% to 28.39bn euros.
The car manufacturer also said it would likely be selling more than half its cars outside Europe by 2015.
“The group is now well on track to rebuilding sustainable profitability with strong first-half results driven by market share gains,” said Philippe Varin, Peugeot’s chairman.
Mr Varin also highlighted the carmaker’s joint venture with Changan Automotive of China, agreed in May.
The 50-50 joint venture will produce 200,000 vehicles initially in Shenzhen, southern China, starting in the second half of 2012.
The deal is part of Peugeot’s plan to increase sales outside Europe.
It has an existing venture with Dongfeng Motor Group in China, where car sales rose 50% in the first half of the year.