Peugeot motorcycle sale – how it affects UK riders

Indian vehicle manufacturer Mahindra Two Wheelers Ltd (MTWL) has completed the purchase of a 51% stake in Peugeot Motorcycles (PMTC).  The 28 million Euro deal was initiated in October last year, with part of it seeing 15 million Euros put into PMTC to finance projects.

PTMC is the oldest motorised two-wheeler manufacturer in the world, with a history dating back 116 years, producing 79,000 scooters in 2013.

Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra commented: “The coming together of Mahindra & Peugeot is a win-win for the two wheeler businesses of both companies. Mahindra would offer access to the India market, mass market product technology and competence in marketing while Peugeot brings premium range, a strong European footprint, and a globally recognized brand. This partnership would enable both MTWL and PMTC to speed their international expansion by driving synergies and leveraging respective strengths of both parties”.

Mahindra Racing already competes in Moto3, and the company is bay developing electric powered two wheelers for the US market.

It’s said that Mahindra will support Peugeot’s global growth plan, and the brand-building effort that enriches the “Frenchness” of PTMC.

The Mahindra Group is a $16.5 billion multinational based in Mumbai, India, employing more than 180,000 people in over 100 countries.

We spoke to Richard Davies, Managing Director of 3X Motorcycles – currently celebrating 20 years of distributing Peugeot scooters in the UK.

How do you see the 51% stake purchase by Mahindra of Peugeot affecting UK buyers, and owners of Peugeot bikes?

We doubt UK customers will experience any difference – Peugeot Scooters still has its headquarters in France. Jaguar/Land Rover is also owned by an Indian muli-national, but UK customers aren’t really affected by that.

While the deal will give the Indian giant access to European technology, will it be a two-way street? Should we expect to see more budget-priced Peugeots in the future? 

This deal is more about expanding Peugeot’s market share in developing markets, like India and South America. 

It appears that Mahindra needs Peugeot’s experience as much as Peugeot needs Mahindra’s investment. Which global markets are most likely to benefit from this deal? 

The combination of an established brand and massive investment can only help in every market. 

With Mahindra looking to grow volume, then restructure the company in two years, how do you see this affecting the products?

The main benefit of the investment by Mahindra is to fund product development and expand into new markets. We expect to see more new models coming on stream faster than would have been the case otherwise.

Will the injection of money actually help to create an even more premium product, similar to Tata’s ownership of Jaguar/Land Rover?

Yes, this cash injection will help Peugeot to expand its range and introduce innovative premium models, like the Peugeot Metropolis 3-wheeler and Satelis maxi scooter, alongside their range of great value scooters.