Indian automobile giant Mahindra was recently in news as they are purchasing a major stake in a French company. Mahindra will be acquiring a controlling stake in Peugeot Scooters. The Indian manufacturer has been on a constant hunt to find an international connection for its two-wheeler operations.
The Indian automobile giant has now confirmed that it would not be bringing Peugeot to India. There was fear in the French company that all operations could shift to India. Mahindra has confirmed nobody would be losing their job just yet.
The Indian two wheeler manufacturer has recently launched its Gusto scooter, which has been developed from the ground up. They have also been developing their 300cc motorcycle, which they have christened ‘Mojo'.
Mahindra management has confirmed to Peugeot that they would not be releasing any employees for the next two years. The Indian manufacturer has nominated three of its directors to be on Peugeot's board, so far there is no confirmation on this situation.
Currently Peugeot does not sell high volumes of its scooter and is a niche market player. The competition, however, has moved into larger markets and to be sustainable they have to move to mass markets. Mahindra and Peugeot joint venture focuses to introduce scooters in new markets.
The joint venture is being termed as ‘ Plan of Recovery And Activity'. Mahindra and Peugeot will manufacture their scooters at its Mandeure facility in France. For a sustainable future they will be letting go of 90 employees through their voluntary departure. They will not be shifting its manufacturing centre to India any time soon.