The joint venture between French carmaker PSA Peugeot Citroen (UG.EPA) and China Changan Automobile Group said Sunday that it plans to sell premium cars in China and some overseas markets, Reuters reported. With an initial investment of US$1.3 billion, the 50-50 Changan PSA Automobiles venture said it will set up a research and development center to develop its own brand, as well as the Peugeot and Changan brands. “It is the first joint venture to be allowed to set up an overseas production base and operate the export of multiple brands,” the JV said in a statement. Changan PSA will start production in the middle of 2013 with an initial annual capacity of 200,000 vehicles and engines, targeting the fast-growing China’s premium segment with an initial focus on introducing its Citroen DS line. China is the world’s largest auto market; its premium market rose 33.5% in the first half of 2011.