Tweet
Mahindra has been in discussion with European manufacturer Peugeot to expand its scooter segment in India.
M&M has been engaged in a discussion with Peugeot for several months. The discussions revolve around sharing technology and a distribution tie-up across geographies, both in Europe and India and other emerging markets.
According to a newswire agency the scooter business of PSA has been loss making for over a decade. In 2013, it sold 79,000 vehicles which was a gain of 8.2%. The unit employs nearly 500 people in France and 300 people at a joint venture in China.
Back in Europe, Peugeot has been facing stiff competition from the European scooter leader Piaggio. At the end of 2012, PSA closed an engine plant for the scooter business concentrating production at a factory in Mandeure in eastern France.
Part of its turnaround plan was the three-wheeled Metropolis, which was introduced last year. The original target of making 7,000 units a year has been scaled back to 4,000, reported the newswire.
Source: Mahindra & Mahindra in talks to buy Peugeot's scooter unit: Report - The Economic Times
M&M has been engaged in a discussion with Peugeot for several months. The discussions revolve around sharing technology and a distribution tie-up across geographies, both in Europe and India and other emerging markets.
"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 twowheelers in the country and Peugeot scooters could be ideal fit for present and for the future,"
Back in Europe, Peugeot has been facing stiff competition from the European scooter leader Piaggio. At the end of 2012, PSA closed an engine plant for the scooter business concentrating production at a factory in Mandeure in eastern France.
Part of its turnaround plan was the three-wheeled Metropolis, which was introduced last year. The original target of making 7,000 units a year has been scaled back to 4,000, reported the newswire.
Source: Mahindra & Mahindra in talks to buy Peugeot's scooter unit: Report - The Economic Times
Comment