Mahindra Two Wheelers- Peugeot may enter deal later this week

    Mahindra's stake acquisition may signal the Peugeot's entry into the Indian two-wheelers market.

    Published On Oct 06, 2014 01:02:00 PM

    21,690 Views

    Mahindra Two Wheelers- Peugeot may enter deal later this week

    An Autocar Professional exclusive story. 

    Mahindra Two Wheelers, the two-wheeler subsidiary of Mahindra & Mahindra is likely to acquire Peugoet's scooter business later this week, our sister-magazine Autocar professional has found out with the option of having full ownership later.

    M&M had earlier entered into the two-wheelers market by acquiring an 80 percent stake in the Pune-based Kinetic Motor Company.

    Currently, Peugeot is undergoing a major financial restructuring drive, which may have led it to divest stake in its scooter business. The deal between the two companies should be considered a strategic move by both - Peugeot and M&M.

    The deal may also facilitate Peugeot Scooters' entry into emerging markets through M&M. The move may give the Indian company's technological capabilities a huge boost, as well as a foothold in the European markets, not to mention added sales figures.

    However, the deal to acquire the reportedly loss-making Peugeot scooters also means an additional challenge for Mahindra Two Wheelers, which is already fighting to turn profitable in an extremely competitive industry.

    Currently, M&M is a marginal player in the Indian two-wheeler market with a market share of only one percent. The company recently launched a new scooter called the Gusto, which is also aimed at export markets in South Asia, Central America and Africa. 

    Copyright (c) Autocar Professional. All rights reserved.

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