Report – Mahindra and Peugeot mulling an alliance

Posted on: Aug 5, 2014 - 2:59pm IST

According to a newspaper report, Mahindra & Mahindra and Peugeot are looking to enter into a strategic alliance which could see both the brands benefiting from several synergies.

According to top industry sources, a high level management team from Mahindra has already visited Peugeot’s head quarters in Paris to hold talks regarding the alliance. While Mahindra has not issued a statement in this regard, Peugeot stated that the Indian market remains to be in its focus but no discussions are underway for a rapid return to the sub-continent.

Peugeot Exalt at Auto China 2014
An alliance between Peugeot and Mahindra could result in synergies in manufacturing presence and technology.

If the alliance takes shape, it would involve technology sourcing and mutual sharing of production facilities. Peugeot which aborted its plans to enter India with an INR 4,000 cr plant at Sanand, after the ground breaking ceremony, could use the possible partnership with Mahindra to make a comeback.

Mahindra could permit Peugeot to use its Indian production facilities in exchange for having manufacturing presence in Europe using the French automaker’s infrastructure. Further, Mahindra could source diesel engines and hybrid technologies from Peugeot. Its to be noted that the Indian automaker has a history of sourcing diesel engines from Peugeot.

The PSA Peugeot Citroen Group is undergoing a comprehensive restructuring process. A tie-up with Mahindra would be mutually beneficial as far as manufacturing presence is concerned. It is also reported that Mahindra could invest in Peugeot.

[Source: Times Of India]

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4 thoughts on “Report – Mahindra and Peugeot mulling an alliance

  1. Dr. Nayak says:

    Hi DDA,
    I don’t think you know what you are talking about. Just look at the consumer reports and initial quality reports they will speak for themselves. My friend used to have Peugeot and got rid of it before the warranty expired, as he used to know the service guys and attendants by name due to frequent visits. Hope your job is going well with Peugeot, as they have big layoff coming !

  2. Nelson Dantas says:

    I live in Brazil and Peugeot’car had the same prejudice Dr. Nayak. Today, Peugeot-Citroen’s cars are the best choice.

  3. DDA says:

    Peugeot and Citroen are some of the best engineered cars you can find and their quality record has nothing to be ashamed of. Trust me, I have had an unsurmountable quantity of issues with German cars and from a reliability stand point (besides Toyota) French cars are pretty good.
    PSA left the US market because its models were not adapted to the characteristics of that market (SUV, large cars), not because of “worst quality ratings” as you said. It made more sense for them to invest in China and South America than in a mature and very price driven market – I live in the US by the way and have an Audi A8, a Toyota Prius first gen and a Ford F150. And I’ve also had one Fiat, 2 VW, 1 Citroen, 2 Renaults, 3 BMWs, 1 Mercedes and 2 Peugeots (I like cars what can I say :=). Worst were VW and BMW. No major problem on any of the other brands.
    You need to know what you’re talking about before you start bashing a company just because of your prejudices…

  4. Dr. Nayak says:

    Why Mahindra is always involved with looser companies? From poor quality Korean to poor quality French auto manufacturing company? Peugeot has one of the worst quality ratings in automobile industry, and that is the reason they have withdrawn from the quality/value conscious US market.


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About the Author
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!