Mahindra Two Wheelers (MTWL), who own a majority stake in Peugeot Motorcycles is looking to introduce their offerings to take on the Vespa line up in India. With the French scooters, Mahindra is looking to get a stronger foothold in the two-wheeler market in India.
In 2015, Mahindra Two Wheelers completed the 28 million euro acquisition of 51 per cent stake in Peugeot Motorcycles (PMTC), a part of the euro 54 billion France-based PSA Group. They are in the process of synergising operations between Mahindra Two Wheelers 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 Mahindra and Mahindra, 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 Two Wheelers. Peugeot is a very strong brand 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."
Similar to the European market, Vespa and Peugeot will go head-to-head in India. Mahindra will also have to cut costs of Peugeot scooters just like Piaggio does for the Vespa.
Source - ETAuto
