Mandeure [France], Oct 29: Mahindra Two Wheelers Europe, a subsidiary of Mahindra & Mahindra, will acquire 100 per cent ownership of Peugeot Motocycles (PMTC) to drive future growth in core European markets and expand into new geographies, including select Asian markets.
This growth plan is backed by a robust investment plan which includes introduction of seven new products between 2019 and 2021. The brand’s presence in Europe will be fortified, with France remaining a major market and PMTC’s headquarters continuing to be based at Mandeure. Mahindra Two Wheelers had acquired a 51 per cent equity stake in PMTC from Groupe PSA in 2015. It had infused 15 million euros (about Rs 110 crore) into Peugeot to finance projects implemented through the partnership.
“We are seeing positive momentum at Peugeot Motocycles,” said Rajesh Jejurikar, President of FES & Two Wheelers and Member of the Group Executive Board at Mahindra & Mahindra. “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,” he said in a statement.
The Peugeot brand will continue to be used in the future under the trade license agreement between PMTC and Peugeot. In addition, the Peugeot design teams will continue to assist in the design and development of PMTC products in close cooperation with the PMTC management and the Mahindra Group.
The transaction will be completed after due process. The Mahindra Group has a diverse portfolio of businesses including the Two-Wheeler Division and markets products under several brands including the Peugeot brand.