India’s Mahindra Group continues its shopping spree with the full acquisition of scooter manufacturer Peugeot Motocycles.
Following the purchase of SsangYong Motor in 2011 and Pininfarina in 2015, the Mahindra Group will now have full ownership of the world’s oldest scooter manufacturer.
Mahindra Two Wheelers Europe, a subsidiary of Mahindra Group, said it would acquire all outstanding shares in Peugeot Motocycles (PMTC) from Groupe PSA. The Indian conglomerate hopes the transaction will enable it to drive future growth in core European markets as well as expand into new regions, including select Asian countries.
Mahindra Group already had a 51 percent equity stake in Peugeot Motocycles, which it acquired in January 2015 from PSA. By taking full ownership, the Indian company aims to grow the business further in core markets such as the G7 (in Europe) as well as expand into new regions, including select Asian markets.
Its growth plan includes the launch of seven new products between 2019 and 2021. The Peugeot Motocycles brand will be strengthened in Europe, with France remaining a major market and home of the company’s headquarters in the historical location of Mandeure.
More importantly, Mahindra will continue to use the Peugeot brand in the future under the Trade License Agreement between PMTC and Peugeot. Additionally, Peugeot’s design teams will continue to assist in the design and development of PMTC products.
“This decision by the shareholders will ensure that Peugeot Motocycles benefits from the expertise of a significant global player in the two wheelers industry,” said Jean-Philippe Imparato, Executive Vice President Peugeot Brand. “We at Peugeot will maintain our commitment through our utilization of the Peugeot brand and extend our support to design and technological innovations,” the representative added.
Note: Peugeot Metropolis 400i RX-R pictured