The chief at PSA Peugeot Citroen has forecast a resurgence in the European automotive market during the fourth quarter of 2003.

Whilst lamenting continuing difficulties for Peugeot itself in its home market of France, Jean Martin Folz told Reuters that the wider picture for automotive manufacturers in the region was becoming increasingly promising.

'The fourth quarter should be better,' Mr Folz told Reuters in an interview at the Tokyo Motor Show.

'I believe the European market is no longer decreasing, so we will probably see some kind of upturn there,' he added.

PSA is Europe's second-biggest auto maker, and the encouraging noises from the firm's chair are likely to stimulate hopes that the automotive sector is on the road to recovery.