PSA developing one-tonne ute with Changan

Peugeot and Citroen's owner, PSA Group, has announced a deal to develop an all-new one-tonne pick-up with Chinese car-maker Changan Automobile.

Due on sale in both China and global markets by 2020, the new joint-venture ute project will see the French-owned car giant (that recently purchased Opel and Vauxhall) invest €500 million ($A70 million) in its Chinese operation.

Changan is already considered one of the 'big four' Chinese automakers (last year it made more than three million vehicles) and already has an existing partnership with PSA that dates back six years.

Before the ute announcement, Changan most recently announced it will help PSA develop its premium DS brand in the Chinese market.

Set to be built in Changan's existing light commercial vehicle plant at Ding Zhou in east China, the forthcoming pick-up will be designed and engineered for not just China but global markets.

PSA says it hopes the new pick-up will help it triple its overseas sales of commercial vehicles by 2021.

Currently, Peugeot is the only PSA brand already offering a utility.

The Peugeot Pick Up (pictured) was created exclusively for the African market and was the result of another joint-venture, this time with Chinese brand Dongfeng.

Based on the existing Donfeng Rich pick-up, the French car-maker's version uses a Nissan-sourced 2.5-litre turbo-diesel.

According to industry data supplier JATO Dynamics, the renewed interest in utes and pick-ups is fueled by huge growth globally in the segment.

In the first half of 2017, 323,000 mid-size pick-ups were sold in the Asia-Pacific region, where the Ford Ranger was most popular, with a further 120,000 finding homes in South Africa.

Meanwhile in Europe, ute registrations are 19 per cent up with total sales topping 80,600.

Set to go head-to-head with the Ford Ranger, Toyota HiLux, Nissan Navara and Mitsubishi Triton when it reaches markets worldwide, the PSA pick-up will also face competition from the likes of Renault and Mercedes-Benz, which are about to launch the Alaskan and the X-Class respectively.