Mahindra & Mahindra has been striving to gain a strong hold over two-wheeler market of India from a long time. In the same lieu of efforts, the company is now eyeing the French brand, Peugeot Motorcycles, which holds a high repo for two-wheelers. The Indian UV maker happens to be a majority stake holder in the company. It mainly plans to sync business operations of Peugeot Motorcycles with Mahindra Two Wheelers Limited. The joint sourcing will help in optimizing the operations of two companies and getting an entry in the highly active scooters segment of India.
As per the executive director of M&M, consumers can expect PMTC products in India in near future. The move is expected to present a win-win situation for both brands which are currently facing struggles in the 2W domain. Despite being a strong brand, Peugeot motorcycles are facing a decline in sales and growth from quite some time.
The Indian auto giant currently enjoys a 51 per cent stake in the company whose worth extends to 28 million in the 54 million French company. As per the agreement between two companies, Mahindra Two Wheelers Limited (MTWL) has invested around fifteen million (Rs.110 Crore) in this partnership. The company also owns the shares that were previously held by PSA.
As per some sources, through this step Mahindra plans to pit Peugeot motorbikes against Piaggio Vespa in the scooter segment. The two brands are already at logger’s head in Europe. The biggest challenge for Vespa is the price which is yet to be brought under affordable limits of scooter riding segment of India. If Mahindra gets successful in doing that, it will attain a direct edge over Vespa in near future.
Source: ET
