Mahindra & Mahindra (M&M), which holds a majority stake in the French company Peugeot Motorcycles, is looking at introducing Peugeot Motorcycles in India.
The auto major, which is in the process of synergising operations between Mahindra Two Wheelers (MTWL) and Peugeot Motorcycles (PMTC), is working on sourcing PMTC products to India very soon. Apart from product interventions in the scooters segment, Mahindra is looking at joint sourcing to optimise operations of the companies.
M&M, which has struggled to get a foothold in the country's intensely competitive two-wheeler market, is looking at tremendous potential and value Peugeot Motorcycles could bring in to its two-wheeler business.
Mahindra Two Wheelers had completed the 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 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.
Source : BS Motoring