Peugeot has already expressed its desire to expand its lineup and sales figures in the coming years, and now news has come that part of this strategy could involve the creation of a new subsidiary brand.

The French carmaker is contemplating launching a budget brand for Europe that would specialize in low-cost vehicles, according to a France's La Tribune. A new budget brand would be in keeping with Peugeot's desire to focus on emerging economies and boost its sales to two million units per year, and marketing low-cost models should be made easier if they are grouped together into a sub-brand.

There is also concern over low-cost models reflecting poorly on the Peugeot and Citroen brands, giving further weight to the idea of a new subsidiary brand. While the plan is still in contemplation, Peugeot may use one of the brands that it already owns rather than creating a new one. These include the 'Talbot' brand which Peugeot took over from Chrysler in 1978 and axed in 1992 following poor sales.