PSA Peugeot Citroën is to invest €300m ($442m) in a greenfield assembly plant in Russia in a big push into one of the world’s fastest-growing car markets.

Europe’s second-largest carmaker said it would start construction by the summer on the factory, which will have capacity to produce 150,000 cars a year and be on a 200-hectare site in Kaluga, 180km south-west of Moscow.