PARIS -- PSA/Peugeot-Citroen is developing an entry-level car that will be produced and sold in emerging markets starting in 2011.

The French carmaker's new low-cost strategy, unveiled by CEO Christian Streiff at this month's Paris auto show, is similar to the approach taken by rival Renault.

Renault's Logan has been a huge success in markets such as Russia and Romania. The automaker sold 367,000 Logans in 2007, and wants to produce 750,000 in 2008.

PSA is studying sites in Turkey and Poland to build its planned low-cost model.

It will initially be sold in eastern and central Europe, Russia, Turkey and north Africa under the Citroen and Peugeot brand names.

Streiff said the five-passenger sedan could eventually be sold in other emerging markets where PSA is present, including China and South America.

PSA has a joint venture in Wuhan, China, with Dongfeng Motors.

Turkey and Poland were among four countries PSA identified last month as potential sites for a new factory to build a planned 1.0-liter three-cylinder engine starting in 2011.

Not for western Europe

The other two candidate countries are Romania and Ukraine.

Company sources told Automotive News Europe that the 1.0-liter engine could be fitted on the planned low-cost car, which will likely be built on a modified version of an existing platform.

PSA says it will not copy Renault's strategy of selling its entry-level product in the core western European market.

"We are not thinking about selling low-cost vehicles in France," or in western Europe, Streiff said.