Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

Mahindra Two Wheelers Europe has announced that the company acquired a 100 percent stake in Peugeot Motorcycles. The company acquired a 51 percent stake in Peugeot Motocycles in 2015 in order to make an entry in the European two wheeler market.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

In addition to investing 13 million Pounds (Rs 109 crore) towards acquired shares owned by French auto manufacturer Groupe PSA, the Mahindra conglomerate invested 15 million Pounds (Rs 136 crore) towards Peugeot's product development departments.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

Mahindra says that Peugeot Motorcycles has been showing positive figures since the initial investment. The brand's 50cc moped, Kisbee, became the best selling model in its segment in Europe.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

In addition, the company's flagship three-wheeled scooter, Metropolis, is witnessing an increasing in domestic and Chinese markets. The recently launched Peugeot Urban GT maxi-scooter is also doing well in its target markets.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

Mahindra wants to dive deeper growth in European and Asian markets. That is the primary goal of acquiring a 100 percent stake in the French scooter brand. The company has also announced that Peugeot will unveil and launch seven new products by 2021.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

As a part of the license agreement, Mahindra will continue to use the Peugeot branding on scooters, and the Peugeot design team will be involved in designing two wheelers.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

Europe is looking at solutions to clear overcrowded city centers, and expects that urban commuters will switch to two wheelers at a steady pace. Mahindra's new round of investments in Peugeot Motorcycles is expected to help the brand increase its presence in Europe, and also help expand into new markets.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

In addition, having total control of operations will allow Mahindra to take strategic decisions without any opposition. The company could move manufacturing of certain Peugeot scooter models to its under-utilized Pithampur plant. This would manufacturing costs.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

There is no concrete information about an India launch at this time, however, the success of Peugeot's Aprilia brand could push Mahindra to launch Peugeot products. We expect some of the Peugeot scooters and motorcycles to be showcased at the Delhi Auto Expo.

Mahindra Two Wheelers Acquires 100 Percent Stake In Peugeot Motocycles

Thoughts About Mahindra Acquiring Peugeot Scooter and Motocycles

Here we go again! We thing Mahindra hasn't learned anything with Classic Legends. They're unable to register sales figures, have had multiple issues raging from rust to sloppy deliveries, and a busted online delivery estimator. That was followed by launching a limited edition Jawa, deliveries of which will be governed by a game of chance. And now there's Peugeot. Let the bombing begin!

Most Read Articles

English
Read more on: #mahindra
Article Published On: Monday, October 28, 2019, 14:56 [IST]
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Drivespark sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Drivespark website. However, you can change your cookie settings at any time. Learn more