Mahindra Two Wheelers Europe has just recently made an announcement that it will be taking 100 per cent ownership of French-based Peugeot Motocycles (PMTC). The amount remains undisclosed for now.
Mahindra Two Wheelers is a subsidiary of the Indian firm Mahindra & Mahindra Ltd. The firm had acquired a 51 per cent equity stake in PMTC from Groupe PSA in 2015. Sources claimed that the company had infused £15 million (₹110 crore) into Peugeot in order to finance projects implemented through the partnership. It had also spent £13 million on the purchase of shares held by PSA.
Through this new acquisition, the firm aims to focus on future growth in core European markets. In tandem to that, it will also set a drive to expand into new geographies, including selective Asian markets. We will also probably be expecting new products between 2019 and 2021.
“We are seeing positive momentum at Peugeot Motocycles. Kisbee becoming the largest selling 50cc vehicle in Europe, Peugeot Metropolis getting stronger in Europe and China. The positive market response to the new launch of the Urban GT connected Pulsion, are all cases in point. We fully support PMTC’s Performance 2020 and look forward to the future with enhanced optimism,” says Rajesh Jejurikar, President – FES & Two Wheelers, and Member of the Group Executive Board, Mahindra & Mahindra.
The firm will continue using the Peugeot brand under a licence agreement between PMTC and Peugeot.