Mahindra assumes full ownership of Peugeot Scooters
Indian automotive giant Mahindra has upped its majority stake in Peugeot Scooters to a full-on buyout of the French motorcycle manufacturer
Mahindra’s European two-wheel arm has announced it will be taking over the entire Peugeot scooter division from PSA and will go on a model offensive of seven new scooters over the next two years.
The Indian automotive giant already held a controlling 51% stake in the Peugeot Scooter company but has now gone ahead and purchased it entirely, bringing an end to its association with the PSA Group, which sells cars through the Peugeot, Citroen, DS, Opel and Vauxhall brands.
One of the world’s largest manufacturers of scooters, Peugeot builds Europe’s biggest-selling 50cc two-wheeler, the Peugeot Kisbee, and is a major player in Asian markets too with many of its models constructed in China.
Though the deal raises the possibility of shifting production to India too – logically at the behest of its French plants which demand higher running costs – Mahindra insists maintaining Peugeot’s foothold in Europe is key to its growth plans and intends to increase the market share.
Even so, Mahindra – which builds its own scooter range named Gusto alongside the domestically popular Centuro range – says it seven new models in mind for Peugeot up into 2021, raising the possibility that these will be constructed in India.
Despite the buyout, Mahindra says it has no plans to phase out the Peugeot brand.
“We are seeing positive momentum at Peugeot Motorcycles,” said Mahindra’s Rajesh Jejurikar, president. “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.”
Who is Mahindra?
Mahindra is India’s largest automotive manufacturer behind TATA and Maruti Suzuki and has grown significantly in the last 20 years from offering basic 4x4 machinery based on Jeeps to branching out into more passenger vehicles, SUVs, MPVs and motorcycles. It is the 17th biggest company in India.
Motorsport fans may remember Mahindra competing in the Moto3 World Championship as a constructor where it achieved three podiums results over three seasons. It currently competes in the FIA Formula E Championship
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