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


    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.



    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Bike Price

    Poll of the month

    Which according to you was India's first hot-hatchback?

    Fiat Palio 1.6



    First-gen Maruti Zen



    Chevrolet Optra SRV



    Total Votes : 1294
    Sign up for our newsletter

    Get all the latest updates from the automobile universe