Mahindra & Mahindra to buy 51% of Peugeot Motorcycles

Article by Christian A., on October 10, 2014

Mahindra & Mahindra Ltd. will acquire a 51-percent stake in Peugeot Motorcycles as it bids to expand its motorcycle business by gaining access to European technologies. Peugeot Motorcycles is the scooter unit of PSA/Peugeot-Citroen.

The deal is part of a plan by PSA chief executive Carlos Tavares to stop the carmaker’s financial bleeding and start making profits. Selling the stake to Mahindra will lessen PSA’s exposure to Peugeot Motorcyles, which has posted losses for a decade while failing to keep up with Italian scooter maker Piaggio.

Mahindra Two Wheelers Ltd. plans to inject EUR15 million ($18.9 million) into Peugeot Motorcycles, Mahindra said in a stock exchange filing. The stake buy in Peugeot Motorcycles should allow Mahindra to better compete with the current leaders in India’s fast-growing two-wheeler market -- Hero MotoCorp and Honda.

Mahindra would also be better positioned to penetrate a scooter market which sales jump 23 percent in the year ended March. Peugeot Motorcycles logged an 8-percent jump in scooter sales in 2013 to 79,000 unit.

It currently employs almost 500 workers in France and 300 more at a joint venture in China. Tavares told French radio RTL last month that the Peugeot Motorcycles was a drag on the group, adding that a solution to get rid of the liability.

If you liked the article, share on:

Comments

Recommended

Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries