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 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.

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 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.

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.

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.

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.

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.

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!