Mahindra to take over Peugeot Motorcycles?
Snapshot: Peugeot is struggling to compete against the Piaggio & C. Spa, which is the largest manufacturer of Italy.
Sources have confirmed that Mahindra & Mahindra Ltd. (M&M), India’s very own largest utility vehicle maker, is coming close to takeover the Peugeot Motorcycles, a scooter business of PSA Peugeot Citroen (UG) company. Although the sources denied to reveal their identity, they categorically said that an announcement can be made soon. Mahindra, in an e-mailed statement sent to a leading daily, has denied to comment on any speculative news.
Mahindra entered the two wheeler market in 2008 when they acquired the Kinetcic Motor Company and partnered with Sanyang Industry Company of Taiwan in the development of its vehicles. If the acquisition indeed takes place, Mahindra will get an access to the Italian technology, which will give them a boost against the giants of Hero Motocorp and HMSI in India. Currently these two commands about 70% of the scooter market share of India.
Mahindra two wheelers didn't pick up the pace as expected, but the last year went well for them with sales almost doubling in a financial year alone. Aggressive marketing and revamped portfolio was the reason. Mahindra is actively participating in Motorsports with some wins in MotoGP3 series. They are also looking forward to launching Mojo, their 300cc performance bike. Other than this, they have scooters like Dura, Rodeo, Centuro in their product mix.
Peugeot, itself, is going through some very rough times. The 2nd largest scooter manufacturer of Italy, posted losses for almost a decade. Peugeot is struggling to compete against the Piaggio & C. Spa, which is the largest manufacturer of Italy. Vespa, is their trademark product and comes in India too. Peugot is headed by Carlos Tavares and he is trying hard to revive the losing scooter business. He once said that the scooter business is a burden on the group and they are working on a solution for the same. We suppose, he was pointing towards the Mahindra deal.
We think you'd like...