Mahindra & Mahindra, which has struggled to get a foothold in the country's seriously focused two-wheeler market, is looking to introduce a few products of Peugeot Motorcycles, the French company. Mahindra & Mahindra is in the process of synergising operations between Peugeot Motorcycles and Mahindra Two Wheelers. Mahindra is looking at joint sourcing to enhance operations of the organizations.
Executive director of Mahindra & Mahindra said that We can take a look at Peugeot Motorcycles products coming into India, which we are working on right now. Peugeot is a very strong brand a company that is currently not doing extremely well, but a company in which we see huge potential to come to discover the value they convey to our bike business and to make that value.
Mahindra Two Wheelers had finished the 28 million acquisition of a 51% stake in Peugeot Motorcycles, a part of the 54 billion France-based PSA Group, in the previous year. Under the terms of the agreement, Mahindra Two Wheelers had infused 15 million into Peugeot Motorcycles to finance projects implemented through the critical partnership and had also purchased shares held by PSA, which would allow Mahindra Two Wheelers to take a 51% stake in Peugeot Motorcycles.
An auto industry official, who did not wish to be named, said Mahindra & Mahindra is taking a shot at setting Peugeot scooters against Piaggio Vespa in India. Peugeot & Vespa go clash in Europe. Vespa has to legitimize costs to sell in India, the cost is not half of what it is in Europe. Unless Mahindra can do that, there will be no takers.