More than 60,000 additional vehicles will be produced in Europe by the end of August 2015, with volumes to increase for all three of the group's brands – Peugeot, Citroën and DS.

This includes the Citroën C4 Cactus models, which are manufactured in Madrid and has seen orders totalling nearly 30,000 since January. As a result output will be increased by 9,000 units over the period.

The Peugeot line-up will also be ramped up, with additional volumes planned in particular for the 208, 2008 and 308, including the 308 SW version.

The number of DS 3 units manufactured in Poissy, France will also increase, as will volumes across the group's range of utility vehicles.

The move will also see operations stepped up at the group's engine and gearbox plants in France, as well as at its foundries and in its sales networks.

Denis Martin, executive vice president, operational director Europe, said: "Growth in the European market is very good news for the entire automotive industry, from plants to dealership networks to suppliers. It's having a real turbo effect on PSA's performance. The positive development we're seeing in the market today means we can step up execution of the Back in the Race plan, which was based on the assumption that the market would remain flat. With the support of our suppliers, and thanks to the flexibility provided for in the agreements signed with employee representatives, we are mobilising all our resources to meet demand from our customers." 

Commenting on the new, IHS Automotive principal analyst, Ian Fletcher said: “PSA's announcement that it is to lift output at some of its production facilities in Europe coincides with a 3.4% year-on-year (y/y) increase in registrations during the first quarter of 2015, according to the latest European Automobile Manufacturers' Association (ACEA), but more importantly a 8.7% y/y gain in March alone. Light commercial vehicle (LCV) registrations are also rising; the most recent data for vehicles registered in the EU released by ACEA show a 8.5% y/y gain during the first two months of the year. Some of the key beneficiaries from this increase are its newest models, which continue to be of interest to more confident consumers. Indeed, the Peugeot 2008 is capitalising on the strength of demand for B-SUVs, while the Peugeot 308 perhaps indicates the improvements over the first generation as well. The initial strength of the Citroën C4 Cactus also bodes well for this brand's future direction, which will leverage a number of its key features.

“Despite reducing the number of models in future, IHS Automotive expects that growth will come, although a substantial improvement may not be for a few years. Having registered around 3.17 million units in 2014, we forecast sales reaching only 3.4 million units by 2020. Nevertheless, momentum is expected to continue to grow, with a peak of 3.8 million in 2022.”