Mahindra Two-Wheelers has recently penetrated into the Indian two wheeler industry with interesting options in the bike segment like Pantero and Centuro, whereas the automatic scooter segment featured the Rodeo and Duro scooters. Piaggio, the international two wheeler brand has not been doing too well in the industry and has been a loss making brand. Mahindra Two-Wheelers has reportedly made an offer to buy 51% stake in Peugeot Motorcycles at a cost of about 28 million Euros (Approximately Rs. 217 crore).
Speaking more on the deal, Pawan Goenka, executive director, Mahindra and Mahindra, said, “We will have a two brand strategy. We will position Peugeot as a premium brand in the market and Mahindra as a mass-market brand. There are clear opportunities for synergies between Mahindra Two Wheelers and Peugeot Scooters. We want to focus on building the brand, global expansion and investing in new products and synergies.” Post the deal, Peugeot will have two members on board, whereas Mahindra and Mahindra shall have three members on board.
A statement released by Peugeot, it reads, “Faced with a European market down sharply for several years, this partnership with M&M would allow Peugeot Scooters to diversify and accelerate its international development by combining its strengths with those of M&M.” The deal with bring mutual benefits as Mahindra shall get quick access to technical expertise and widen their geographical control, whereas Peugeot gets a chance to sustain and grow.
