Mahindra Two Wheelers Ltd. (MTWL), an unlisted subsidiary of
Mahindra & Mahindra has made a binding offer to acquire a 51pc stake in
Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in
France, according to a press release issued by Mahindra Two Wheelers.
PMTC (a.k.a. Peugeot Scooters), a key player in urban
mobility in Europe for 116 years, is the oldest motorised two-wheeler
manufacturer in the world. Peugeot Scooters offers one of the most
comprehensive range of scooters and mopeds, from 50cc to 400cc, including the
successful three wheeled scooter – Metropolis, in the European market.
The transaction between MTWL and PSA, subject to Works
Council consultation, as part of the employee dialogue process and anti-trust
law, would involve infusion of Euro 15 million (Rs 116 crore approx) into PMTC to finance projects implemented
through the strategic partnership, and further sale of shares by PSA which
would allow MTWL to take a 51pcstake in PMTC.
Commenting on the development, Dr. Pawan Goenka, Executive
Director, Mahindra & Mahindra said that the coming together of Mahindra and
Peugeot is a win-win for the two wheeler businesses of both companies. He said Mahindra
would offer access to the India market, mass market product technology and
competence in marketing while Peugeot would bring its premium range, a strong
European footprint, and a globally recognised brand. “This partnership would
enable both MTWL and PMTC to speed their international expansion by driving
synergies and leveraging respective strengths of both parties,” he added.
Over the past few years, Mahindra has strengthened its
position in the two wheeler segment globally. Mahindra Racing competes at the
highest level of global motorcycle racing in the Moto3 category of MotoGP,
while Mahindra GenZe recently revealed its electric two wheelers in the US
market that offer sustainable urban transport solutions to a new generation of
In addition, MTWL has introduced several innovative
technologies in its award winning range, including recently launched Gusto.
MTWL also has sales and distribution operations in Latin America, Africa and
South Asia. The company has assembly operations in many of these markets.
The release said that MTWL would be committed to the current
leadership team at PMTC. This would be similar to the approach that Mahindra
group has followed in other global transactions such as the acquisition of
Korean automaker SsangYong.
A rich heritage: For
more than a century, Peugeot Scooters has created innovative mobility solutions
that meet the individual needs of each of its customers. The year 1898 marked
the introduction of the first Peugeot motor scooter and as years went by it
forayed into electric scooters in 1996 with the launch of the Scoot'Elec, the
first electric motor scooter. In 2002 it came up with Elystar, the first 125
scooter equipped with standard ABS brakes. The year 2011 saw the launch of the the
new-generation, all-electric e-Vivacity scooter and in 2013, the French company
launched the Metropolis, the brand's first three-wheeler.
Picture of a Peugeot Satelis; For representation purpose