Indian tractor and sports utility vehicles major Mahindra and Mahindra plans to work and improve its two-wheeler line up as the company enters talks to buy PSA Peugeot Citroen’s scooter business. Mahindra entered the two-wheeler space in 2008. But the company has not been able to introduce a ground breaking product in the space.
The current product line of Mahindra Two Wheelers Limited comprises of five scooters: Duro DZ, Rodeo RZ, Rodeo UZO 125, Flyte and Kine. Addition of PSA Peugeot Citroen’s scooter business would provide Mahindra Two Wheelers an access to its technology which will be fruitful for company’s business.
Although the company is refraining from commenting on this matter, sources close to development have told Economic Times that an announcement is likely to make way soon. One of the three people told Economic Times, “M&M’s keen interest lies in vehicle platform, hybrid and electric technology and for Peugeot it may be to get a toe-hold into India through two wheelers at a relatively lower cost and expand later into the car segment. There is a growing market for premium two wheelers in the country and Peugeot scooters could be ideal fit for present and for the future.”
However, Ruzbeh Irani, head of group communications at Mahindra, refrained from commenting.
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Source: Economic Times