Deal With Peugeot in Progress: Mahindra Two Wheelers
Mahindra Two Wheelers expects to complete the deal by next month to acquire a 51 per cent stake in Peugeot Motorcycles, part of the France-based 54 billion-euro PSA Group, a top official said on Thursday.
Press Trust of India | Last Updated: January 08, 2015 21:01 (IST)
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Chennai: Mahindra Two Wheelers expects to complete the deal by next month to acquire a 51 per cent stake in Peugeot Motorcycles, part of the France-based 54 billion-euro PSA Group, a top official said on Thursday.
The two-wheeler arm of the Mahindra Group in October 2014 made a binding offer to acquire a 51 per cent stake in Peugeot Motorcycles, one of the oldest motorized two-wheeler manufacturers in the world.
The transaction between Mahindra Two Wheelers Ltd and Peugeot Motorcycles would involve infusion of 15 million euros into Peugeot Motorcycles to finance projects implemented through the partnership.
"The deal is in progress. We are waiting for some documentation work to happen. I am hoping that by end of January or beginning February we should be able to clear all the hurdles. But, it really depends on when those hurdles get cleared," Mahindra Two Wheelers chief of operations Viren Popli told reporters here.
Responding to a query on how Mahindra would position the products under the Mahindra-Peugeot deal, he said, "I do not think we are going to create a Mahindra that looks like a Peugeot. I think, we will let Peugeot do Peugeot (products) and Mahindra does Mahindra (products)."
"It (Peugeot Motorcycles) was the first two-wheeler company in the world to make a motorised transportation. They have a long history. So when you have a brand like that, you do not try to mess it up by trying to create some brand. There has to be a different position."
He said Mahindra Two Wheelers was suited for the "mass" segment, while Peugeot Motorcycles for premium segment.
Peugeot Motorcycles manufactures scooters from 50 cc to 400 cc, he said.
Mr Popli and senior company officials were here to launch the GUSTO in Tamil Nadu priced at Rs 48,600 ex-showroom.
Since the launch of the GUSTO in Northern parts of the country, Mahindra Two Wheelers has sold 10,000 units.
To a query on the company's third product, he said Mahindra Two Wheelers would launch the 300 cc motorcycle 'Mojo'.
"Our next product launch which we are working on is 300cc Mojo, once that is done, we will start filling the gaps between 110cc and 300cc," he said.
Story first published on: January 08, 2015 20:00 (IST)