Few days ago, there were rumours about Mahindra buying the scooter division of the French manufacturer Peugeot but the company denied such reports. Now as per Autocar professional, this deal is indeed taking place and something concrete will come out later this week.
The Indian conglomerate is set to acquire a majority stake in the business with an option to have full ownership later. Mahindra acquired Kinetic the same way a few years ago, with 80 per cent stake. Peugeot’s scooter division on the other hand is not doing good business and has been a loss making company for over a decade. As a part of a major financial restructuring, the Peugeot might divest the scooter business to Mahindra, who may be looking to acquire technology capabilities. Through this acquisition, Mahindra might also want to enter the European market where Peugeot does majority of the business.
Mahindra Two Wheelers have been slowly but steadily increasing its base in the Indian market. After tasting success with the Centuro motorcycle, it recently launched the Gusto scooter, its first 110cc in the fastest growing two-wheeler segment in the country.
