SHANGHAI: China’s Chongqing Changan Automobile has agreed to sell its 1.63 billion yuan ($234.22 million) stake in a joint venture with Peugeot SA to a subsidiary of Baoneng, the company said in a statement on Tuesday.
The eight-year-old joint venture, Shenzhen-based CAPSA, builds cars under PSA’s premium DS brand and has struggled with falling sales. Shenzhen Qianhai Ruizhi Investment, the Baoneng subsidiary, has paid the first installment for the deal, the statement said.
A spokesman for PSA also confirmed on Tuesday that the French carmaker would sell its stake in CAPSA to the Baoneng subsidiary.
Meanwhile, after SAIC and Great Wall Motor, Changan Automobile too is ready to enter India market.
High-level delegates from the China government-owned SUV maker have been regularly visiting India for the last few months and have finalised several decisions pertaining to its India entry.