The group also aims to tap China's luxury auto market by localizing the hatchback Citroen DS5. The DS is Citroen's up-market brand.

The model will start local production in Shenzhen at Changan Peugeot Citroen's plant, in the second half of the year.

Varin hopes the DS5 can attract young Chinese that he considers a very important customer group in the country.

He said different from other luxury products that are already well-positioned in the premium auto segment, the tailored-for-China DS5 offers "a taste of real romance from Paris".

The Wild Rubis concept model under the DS badge is making a world premiere at the show, showing Peugeot Citroen's future trends in the country, said the chairman.

He told China Daily that a SUV based on the concept model will be put into production at the Shenzhen plant in 2014.

The company also brought its latest hybrid technology to the Shanghai show. Called the Hybrid Air, the new technology vehicle is on display for the first to the Chinese audience.

Different from normal gasoline-electricity hybrid, the Hybrid Air is powered by a combination of fuel and compressed air, enabling it to cover 100 kilometers on 2 liters of fuel.

In 2012, the group's market share in China was 3.5 percent. In the first quarter of this year it edged up close to 4 percent.

Varin said he is confident share will end the year a 4 percent.