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NEW DELHI: Mahindra & Mahindra (M&M), which has struggled to get a foothold in the country's intensely competitive two-wheeler market, is looking to introduce some products of Peugeot Motorcycles, the French company in which it holds a majority stake.
M&M is in the process of synergising operations between Mahindra Two Wheelers (MTWL) and Peugeot Motorcycles (PMTC). Apart from product interventions in the scooters segment, Mahindra is looking at joint sourcing to optimise operations of the companies.
Pawan Goenka, executive director of M&M, said, "We can look at PMTC products coming into India, which we are working on right now.
We will look at sourcing, synergy between PMTC and Mahindra 2W." "Peugeot is a very strong brand a company that is currently not doing very well, but a company in which we see tremendous potential to come to find the value they bring to our two-wheeler business and to create that value," he said.
Mahindra Two Wheelers had completed the 28 million (Rs 206 crore) acquisition of a 51% stake in PMTC, a part of the 54 billion France-based PSA Group, last year.
Under the terms of the agreement, MTWL had infused 15 million (Rs 110 crore) into PMTC to finance projects implemented through the strategic partnership and had also bought shares held by PSA, which would allow MTWL to take a 51% stake in PMTC.
An auto industry executive, who did not wish to be named, said Mahindra is working on pitting Peugeot scooters against Piaggio Vespa in India.
"Vespa and Peugeot go head-to-head in Europe. Vespa has to rationalise prices to sell in India; the price is not even half of what it is in Europe. Unless Mahindra is able to do that, there will be no takers," he said.
Source: Mahindra & Mahindra looking to introduce Peugeot Motorcycles in India | ET Auto
M&M is in the process of synergising operations between Mahindra Two Wheelers (MTWL) and Peugeot Motorcycles (PMTC). Apart from product interventions in the scooters segment, Mahindra is looking at joint sourcing to optimise operations of the companies.
Pawan Goenka, executive director of M&M, said, "We can look at PMTC products coming into India, which we are working on right now.
We will look at sourcing, synergy between PMTC and Mahindra 2W." "Peugeot is a very strong brand a company that is currently not doing very well, but a company in which we see tremendous potential to come to find the value they bring to our two-wheeler business and to create that value," he said.
Mahindra Two Wheelers had completed the 28 million (Rs 206 crore) acquisition of a 51% stake in PMTC, a part of the 54 billion France-based PSA Group, last year.
Under the terms of the agreement, MTWL had infused 15 million (Rs 110 crore) into PMTC to finance projects implemented through the strategic partnership and had also bought shares held by PSA, which would allow MTWL to take a 51% stake in PMTC.
An auto industry executive, who did not wish to be named, said Mahindra is working on pitting Peugeot scooters against Piaggio Vespa in India.
"Vespa and Peugeot go head-to-head in Europe. Vespa has to rationalise prices to sell in India; the price is not even half of what it is in Europe. Unless Mahindra is able to do that, there will be no takers," he said.
Source: Mahindra & Mahindra looking to introduce Peugeot Motorcycles in India | ET Auto
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