Mahindra Two Wheelers Limited (MTWL) has obtained a majority 51 per cent stake in Peugeot Motocycles (PMTC), a part of the PSA Group. PMTC has good presence in Europe and is currently its fifth largest scooter manufacturer.
The deal has been sealed for a reported 28 million Euros (218 crore rupees) and requires MTWL to pump 15 million Euros in to its new acquisition for funding future collaborative projects and also further sale of shares, enabling the Indian company to get to 51 per cent and thus control of the company. PMTC also called Peugeot Scooters, has a vast range of products covering two-three wheeled scooters and mopeds. Mahindra Scooters has maintained that the current leadership of PMTC will remain, as it is, with no changes being made.
Speaking on the Pawan Goenka, Executive Director, Mahindra & Mahindra said, “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. This partnership would enable both MTWL and PMTC to speed their international expansion by driving synergies and leveraging respective strengths of both parties”.
Mahindra Two Wheelers has been slowly expanding its global presence. Just a few months back it launched the GenZe electric scooter for the US market and also has operations across Latin America, South Asia and Africa.