Mahindra & Mahindra is looking forward to make it big in the category of scooters. The two-wheeler section of the esteemed brand is in talks with PSA Peugeot Citroen, a major name in European automobile industry. In fact, the Indian brand is in talks with Peugeot for several months now and discussing the possibilities of an understanding. The major topic of discussion was regarding the sharing of technologies between the two brands, and distribution set up in India, Europe as well as other plausible two-wheeler markets.
Originally based in France, Peugeot is a leading name in the world of automobiles in Europe. Initially, it started off by manufacturing cars. Slowly with time, it emerged as one of the leading brands, not only in France alone, but also in the entire continent. As its success reached new quarters, the company started entering into different categories. Slowly, it became a popular name in the field of two-wheelers as well. With this association, it is expected that Mahindra & Mahindra and Peugeot will benefit a lot. On one hand, there will be a collaboration of technologies and techniques, thus improving the quality of performance oriented motorcycles. On the other hand, both the companies will be able to develop their global reach by mingling into the territories of each other.
When asked about the possibilities and scope of this partnership, a source commented, "M&M's keen interest lies in vehicle platform, hybrid and electric technology and for Peugeot it may be to get a toe-hold into India through two wheelers at a relatively lower cost and expand later into the car segment. There is a growing market for premium two wheelers in the country and Peugeot scooters could be ideal fit for present and for the future." The French brand indicated towards coming back into contention after it lost out from the race. The scooter sector has not been doing the best of business for Peugeot. It was facing a loss since the last decade. However, 2013 marked the comeback for this brand, as it sold over 79000 units. As a result, the company faced a growth of 8.2 per cent. On the whole, the company is looking forward to a revival in the scooter segment. Incidentally the plan ‘Back in the Race’ was launched in April at a presentation. The source said, "This roadmap clearly includes Peugeot Scooters. The specific activity plan will be presented in the coming weeks,"
Peugeot has been facing stiff competition from Piaggio, which is the European leader in scooters. A recovery path is inevitable and Mahindra &Mahindra is definitely a fitting opportunity. Another important source said, "There is a small chance of Peugeot wanting to sell off the scooter business. Instead, they want to improve their business and make it sustainable. A tie-up with M&M may be one of the options. Both Goenka and Tavares already share a very good working relationship." Once the deal is finalised, it is expected to benefit both the companies in extending their best feet forward in the segment of scooters.
