Hafei would produce the vehicles in its plant in Shenzhen.

PSA Peugeot Citroën is trying to speed up its development in China, one of its three international strategic growth regions. The company currently operates in China through Dongfeng Peugeot Citroën Automobiles (DPCA), a 50-50 marketing and manufacturing joint venture established in partnership with Dongfeng Motor. DPCA sold 201,300 vehicles in 2006 and 87,100 vehicles in the first five months of 2007.

Hafei is a Chinese carmaker and a subsidiary of the AVIC aeronautics company. Its primary products are mini-cars, mini-buses, mini-trucks, MPV and 3-box cars. Production reached 260,000 units in 2006.