PSA/Peugeot-Citroen Chairman Jean-Martin Folz hopes to achieve this year's targets despite recession and the war in Iraq.
"We are prepared for any circumstances," he said.
Key business indicators for the year to date - sales, market share and cost control - showed improvements through March, Folz said.
He said PSA is currently running its plants at 117 percent of installed capacity, using the Harbour Index formula of two-shift production as 100 percent.
Folz is confident that new markets will continue to develop for the PSA group.
"We will grow worldwide, particularly in China and Latin America," he said.
Folz hopes that by 2004 PSA will produce 150,000 cars per year in China. Mid-term he aims to double production in the country to 300,000 cars annually.
If the Chinese market continues to grow at a similar rate PSA will further increase its manufacturing capacity.
Business in Latin America is also good. PSA's sales and market shares have increased despite the current economic crisis. In 2002 PSA produced 50,000 cars in Brazil and raised its market share from 3.2 percent to 4.6 percent.
Today, up to 100,000 cars are being manufactured on three shifts.
If necessary, PSA will consider adding capacity in Brazil, Folz said.
PSA's sales in central Europe are also expected to rise. In all countries concerned - from Poland to Turkey - Folz's target is to reach "the average market share of western European countries." That means a share of about 10 percent.
Generally, Folz said PSA intends to "move more toward the east."
New car plants are being built in the Czech Republic and Slovakia. Locations in eastern Germany have been examined but rejected by Folz.
"Those locations were unfavorable for our logistics and certain parts of the production process are too expensive over there," he said.
Meanwhile, Folz hopes to maintain PSA's edge in developing diesel particulate filters.
"We have a lead of four years," he said.
Folz says he is happy that German competitors are planning to produce filters.
"That is a fantastic message, great for the environment," he said.
Currently PSA's focus is on increasing the filters' lifetime. The next generation is already being developed. In 2003 the life span of filters will increase from 120,000km to 140,000km.