Mahindra has just officially absorbed Peugeot Motorcycles. A 100% stake in the brand was reportedly acquired by the Indian automaker's Mahindra Two Wheelers Europe, which serves as one of the subsidiaries of Mahindra & Mahindra Ltd. (M&M Ltd). The latest acquisition is part of the USD 20.7 billion Mahindra Group, which is headquartered in Mumbai, India.
On its end, Peugeot Motorcycles will continue to operate out of its headquarters in Mandeure, France. The Peugeot brand is likewise expected to go on with its business under the Trade License Agreement between PMTC and Peugeot. Also, the brand's design teams should be able to continue to assist in terms of design and development of the PMTC products, in close cooperation with its management and the Mahinda Group as well.
According to Jean-Philippe Imparato, Peugeot's executive VP, the decision to be acquired by Mahindra should allow Peugeot Motorcycles to benefit from the expertise of a crucial global player in the two-wheelers business. Imparato added that Peugeot would still maintain its commitment via its utilization of the Peugeot brand, besides its intention to extend its support relative to the design and technological innovations to its future products.
Mahindra's plan to fully acquire Peugeot Motorcycles isn't new. Earlier in January 2015, the company's Mahindra Two Wheelers Europe announced that it absorbed a 51% equity stake in PMTC from PSA to expand its business. Part of Mahindra's intention to invest heavily in PMTC is part of its "Performance 2020" plan. Under this plan, the firm launched seven new products, under Peugeot between 2019 and 2021. Almost all of these products were destined for Europe - France in particular - alongside some essential markets in Asia.
As both Peugeot Motorcycles and Mahindra Group now share some enhanced optimism, their fans can only look forward to a future that is filled with breakthroughs in the two-wheeler industry. And with the Peugeot Brand now onboard, this industry is about to expect entries that should boast both luxury and efficiency in ways only these two brands know how to make.