Mahindra & Mahindra to buy 51% of Peugeot Motorcycles

Article by Andrew Christian, 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

Login or Create new account to add a comment!

Recommended

Chevrolet Equinox is a mid-sized crossover SUV created by Chevrolet for General Motors. First introduced in 2004, this GM Theta unibody platform crossover SUV came into production the following year...
by - September 30, 2016
Mercedes-Benz Vans, one of the world’s top van makers, has just launched adVANce, which is their strategic transport industry initiative for the future. With this, the division analytically considers its...
by - September 29, 2016
In 2007, when Nissan first introduced the R35 Nissan GT-R at the 2007 Los Angeles Auto Show, the car carried with intense power and a price tag of $78,000. Up...
by - September 29, 2016
Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016