Plans to take over the oldest two wheeler manufacturer in the world
Country’s indigenous and innovative vehicle manufacturer Mahindra has placed a bid offer to buy 51% stake in Peugeot Motorcycles (PMTC) through its child company, Mahindra Two Wheelers Ltd. (MTWL). Peugeot Motorcycles, which is a part of the 54 billion Euro PSA group based in France; has the most extensive range of scooters and mopeds starting from 50cc up to 400cc and it has played a key role in the European auto-industry for over 116 years.
“The coming together of Mahindra & Peugeot is a win-win for the two wheeler businesses of both companies. Mahindra would offer access to the India market, mass market product technology and competence in marketing while Peugeot brings premium range, a strong European footprint, and a globally recognized brand.” averred Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra.
As a part of the deal, Mahindra is going to infuse 15 Million Euro into PMTC for implementing various projects under the partnership and will also acquire 51% stake in PMTC. However, the whole process is subject to the clearance from Work Council consultation.
This deal has offered a chance to both the participating companies to expand their businesses by making the apt use of their strengths. Mahindra can now eye the European market and at the same time, it can offer a chance for Peugeot to step in to the growing Indian market.