Mahindra Planning Joint Venture With Peugeot

Indian Utility Vehicle manufacturer Mahindra and Mahindra, has been wanting to join hands with several international four wheeler brand. However, somehow everything fizzles out at the very last moment.

Mahindra has in the past been in partnership with French manufacturer Renault. The Indian automobile manufacturer was among the top runners to buy a major stake in Aston Martin. Now they are planning a joint venture with another French car manufacturer Peugeot.

Peugeot has shown keen interest in returning to India, however, they have no current plans. A joint venture could benefit both the manufacturers as Mahindra can increase its growth into the French market, while Peugeot can start afresh in India with Mahindra's strength.

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Mahindra considers the alliance to be important, if it wants to make an impact in the European market. Currently Tata Motors has acquired Jaguar Land Rover to establish itself in the international market, which is working perfectly for them.

The major reason for the alliance is being expected because of Peugeot's new Head led by Carlos Tavares. He was known for bringing Nissan to India and realising the markets importance. He may be considering getting the French manufacturer to India, to improve its current state and an alliance is the best way forward.

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Peugeot also believes that other than India countries like Brazil, China and Russia are key places for growth of the French brand. They were also helped by Chinese Auto major Dongfeng, along with help from the French government that rescued Peugeot from financial troubles.

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