Mahindra completes 51% stake acquisition in Peugeot Motocycles – Report

Posted on: Jan 21, 2015 - 12:04pm IST

Peugeot scooters could be launched in India as premium models.

Mahindra Two Wheelers completed the 28 million euros (INR 199.5 crores), 51 percent stake acquisition in Peugeot Motorcycles yesterday. Peugeot Motorcycles (PMTC) is part of the 54 billion euro PSA Group.

Peugeot Satelis
Peugeot’s range includes models between 50-400 cc.

Under the terms of the agreement, Mahindra Two Wheelers (MTWL) has injected 15 million euro (INR 107 crores) into PMTC to finance projects.

The new board of PMTC has been formed with Mahindra’s Dr. Pawan Goenka, V S Parthasarathy and Rajesh Jejurikar. From PSA, Maxime Picat, CEO, Peugeot Brand and Emmanuel Delay, Executive Vice President, Operational Director, India-Pacific are part of the board.

PMTC’s market share in Europe in calendar year 2013 was at 9.3 percent or 79,000 units. The brand sells scooters and mopeds with engine capacities ranging from 50 cc to 400 cc, and is present across all major European markets.

Mahindra Gusto launch side
The acquisition could also be a gateway for Mahindra to launch its products in Europe.

PMTC also has two manufacturing facilities, one in Mandeure, France for making premium scooters, and a joint venture plant with Qingqi at Jinan, China where medium and entry-level scooters are made.

Also read: Review – Mahindra Gusto

With the acquisition complete, MTWL could consider introducing select models of Peugeot Motorcycles in India as premium, high-end scooters to compete with the likes of the Vespa sold by the Piaggio group.

Mahindra Gusto – Image Gallery (Unrelated)

[Source – Economic Times]

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One thought on “Mahindra completes 51% stake acquisition in Peugeot Motocycles – Report

  1. Dr. Nayak says:

    Why are they paying $32 mil for a perpetual loss making company with less than 100K in unit sales? The technology for these types of products can be found in every Gully of India, and besides Mahindra has it too (they can design brand new engines and transmissions from ground zero). One thing common about Mahindra’s design and Peugeot is ample use of cheap plastic. We can only hope that Peugeot
    products now will not have cheap self-adhesive plastic graphic stickers! Mahindra rise or Peugeot rise with Mahindra?

    Reply

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Anjan
Anjan Ravi

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