The operation will be responsible for promoting the group's activities to industry, Government and associated agencies, company employees and to the press.
Tod Evans, former managing director of Peugeot Motor Company and recently appointed chairman of Peugeot Citroen Automobiles UK, will be based at the London office. He will continue with his presidency of BEN, the charity for the motor industry.
Evans said: 'PSA Peugeot Citroen Group is totally committed to the UK. We are the number two seller of cars and light commercial vehicles in the UK, with more than 13% of the combined market. We are the number three car maker, producing more than 200,000 vehicles at Ryton, with 65% going to export.
'Add to all of this our interests in finance, logistics and component making, then we are a major contributor to the UK economy, employing 10,300 people.'
He added: 'It will be my responsibility to ensure that our achievements in the UK are properly recognised, so that we can play our part in influencing the legislation and fiscal framework that can, in turn, encourage vehicle selling and vehicle manufacturing to flower and prosper in the UK.'