New Citroen C5: The brand has a 'comparatively short lineup' in China. (Source: Peng Huan / China Daily)

 PSA Peugeot Citroen signed a letter of intent on May 6 with China's No 4 automaker Chang'an Automobile Group to create a 50-50 joint venture.

The partnership will make efficient light commercial vehicles and passenger cars in China, the French carmaker said without providing details.

The move would seem to give a PSA Peugeot Citroen a new foothold in the world's biggest vehicle market, where it lags far behind a slew of bigger rivals like Volkswagen and General Motors (GM).

Yet finding a new partner is likely easier than scoring a triumph in China for the French carmaker if it failed to learn from its lackluster performance over the past 18 years.

Along with Volkswagen Group and General Motors, the company was among the first foreign carmakers to arrive in the Chinese market. It established a joint venture in 1992 with Dongfeng Motor Corp, China's third-biggest auto group,

But the French carmaker's relations with both its partner and the market have been anything but smooth.

Last year, it moved 272,000 cars in China, accounting for a tiny 3 percent of the nation's passenger car market - less than one-fifth of what Volkswagen achieved.

Perhaps worse, it is outsold by latecomers Toyota, Honda, Nissan and Hyundai, and even many of China's indigenous brands such as Chery, Geely and BYD.