PSA Peugeot Citroen's worldwide vehicle sales were little changed in the first half of 2007, slipping 500 units to 1,764,000 vehicles, Europe's second-biggest car group said on Friday.

The automaker said that for the full year it expected to see continued progress in Europe led by demand for its newly launched Peugeot 207 hatchback and the coupe-cabriolet version as well as the Citroen C4 Picasso multi-purpose vehicle and the bigger version of the Grand C4 Picasso.

The arrival of the Peugeot 4007 and Citroen C-Crosser four-by-four cars as well as the Peugeot 308 compact car and the station wagon version of the smaller 207 are also expected to help sales.

Outside Europe, where the market environment is expected to remain generally favourable, PSA said it would continue to enjoy sales growth thanks to its expanded model line-up.

First-half sales amounted to 1 million Peugeot vehicles and 764,000 Citroen-branded cars.

In western Europe, PSA said sales declined to 1,234,000 cars but car registrations -- a more widely used comparison in Europe

-- were up by 0.9 percent to 1,277,000 units. -- were up by 0.9 percent to 1,277,000 units.

In a challenging sales environment, the group's European market share increased to 14.2 percent, it said, compared with 14.0 percent in the first half of 2006 and 13.7 percent in the second half of 2006.

It said the European market had declined by 0.8 percent while the euro had increased versus the yen -- making Japanese imports cheaper -- and competition was aggressive.

On Thursday, cross-town rival Renault reported a 3.8 percent decline in first-half vehicle sales due to an ageing model line-up.

PSA's new chief executive, Christian Streiff, who wants to cut costs and churn out 41 vehicle models by 2010, said in May he wanted to regain market share in western Europe where it once held 15.5 percent and only trails Volkswagen AG.

Previously, PSA Peugeot Citroen said it expected a sales increase for 2007, mainly outside western Europe.