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PSA Q1 sales rise 3 pct, Citroen shines

PARIS, April 24 (Reuters) - Europe's second biggest carmaker PSA Peugeot Citroen posted a three percent rise in first quarter sales on Thursday, defying a shuddering European car market thanks to hit models at its Citroen brand.

The Paris-based firm said in a statement sales in the first three months of the year climbed to 13.841 billion euros compared to 13.439 billion in the same period last year.

Sales at PSA's core carmaking business rose 3.1 percent to 11.222 billion euros, while worldwide unit sales edged 1.7 percent higher to 823,800 vehicles, it said in a statement.

PSA said in its key western European market, where demand slipped 2.6 percent in the period, the firm boosted new vehicle registrations by 2.5 percent, swelling its market share to 16.4 percent from 15.5 percent at the end of March last year.

Its smaller Citroen brand, whose bubble-shaped C3 has been a hit with motorists, drove gains, selling 15.9 percent more new cars and light trucks in the quarter. Sales of Peugeot vehicles slid 7.3 percent.

PSA, hailed by analysts as Europe's leanest carmaker, revved past European rivals with sturdy profits in 2002 and has said it aims to keep sales rising this year despite a welter of new models from rivals Renault and Vokswagen .