Peugeot and Citroën are preparing the launch of their budget models
Peugeot and Citroën are moving ahead with their low-cost car versions. While Peugeot would seek the final design based on the 206, the Citroën would complement the DS range.

The rumoured return of the Talbot brand within its low-cost car programme is moving ahead. The model’s base has been given the internal designation M3 and will be a vehicle starting at a price of just over 9,000 euros.
Each brand in the PSA group will have its own characteristic low-cost model. While Peugeot will revive the Talbot brand in Eastern Europe, China, North Africa and Latin America, Citroën will do the same with the launch of the same vehicle in China. However, the final design of the new model is still unclear, and they could even bring the 405 back into the spotlight .
Indeed, one of the options under study was the adaptation and redesign of the 405, which is still sold in Iran. However, the idea does not yet have a majority within the Peugeot board. The most viable option would be for the base of the budget M3 to be built on that of the Peugeot 206.
On the Citroën side, all efforts will be directed towards China. And no wonder. According to recent August sales figures, the French brand has sold more vehicles in China than in France itself. Its model, internally named M4, could be added to the DS range, although “without being as complicated and a little simpler”.
Source | Autocar
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