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Mahindra Two-Wheelers to buy 51 pct in Peugeot Motorcycles for euro 28 mn
PTI | Mumbai | Updated: Oct 07 2014

Mahindra Two-Wheelers, a fringe player in the domestic market, today signed a pact to acquire 51 per cent stake for euro 28 million (about 217 crore) in Peugeot Motorcycles, part of the euro 54 billion French auto major PSA Group.

"Under the binding offer, Mahindra Two-Wheelers would infuse 15 million euros into Peugeot Motorcycles to finance projects implemented through strategic partnership, and further sale of shares by PSA, which would allow us to take 51 per cent stake in Peugeot Motorcycles," M&M executive director Pawan Goenka told reporters here.

Mahindras will also invest another euro 13 million at a later stage. The transaction is subject to the Works Council consultations as part of the employee dialogue process and anti-trust law, he said, but added that "we hope to close the deal in three months".

Peugeot is well known for its four and two-wheelers in Europe and is the world's oldest two-wheeler maker. However, its two-wheeler business has been undergoing a turnaround.

Mahindras would support the French company's global growth plan and the brand building effort that enriches the "Frenchness" of the Peugeot brand. PSA would support the Brand and growth strategy by holding a minority share for a long term, Jejurikar said.
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Not huge news, but still noteworthy for a few reasons.

First, the Peugeot family lost control of their family business and now it seems that their family business is going to lose majority control of what seems to be their oldest asset. Kind of sad for one of Europe's longest serving 'car-families', but things do change.

Secondly, here's another global player (as Mahindra is in at least emerging markets) that is buying resources in the motorcycle/two-wheel segment. We've seen that happen in the recent past with Audi/Lamborghini and Ducati. We've also heard rumors that MV Agusta was being looked at by FCA and Daimler. And that's beside the fact that some global players like BMW, Honda, and others already exist in this segment.

With all that being said, it still makes me wonder if GM should enter this market at some point down the line. There's no doubt that more and more folks in emerging markets are making a transition to four-wheeled transportation. But there is still a number of people, particularly urban dwellers, who prefer scooters and motorcycles in those markets. Could this be a lost opportunity to reach more customers?
 

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I've never heard of Peugeot motorcycles, push bikes yes.
 
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Not huge news, but still noteworthy for a few reasons.

First, the Peugeot family lost control of their family business and now it seems that their family business is going to lose majority control of what seems to be their oldest asset. Kind of sad for one of Europe's longest serving 'car-families', but things do change.

Secondly, here's another global player (as Mahindra is in at least emerging markets) that is buying resources in the motorcycle/two-wheel segment. We've seen that happen in the recent past with Audi/Lamborghini and Ducati. We've also heard rumors that MV Agusta was being looked at by FCA and Daimler. And that's beside the fact that some global players like BMW, Honda, and others already exist in this segment.

With all that being said, it still makes me wonder if GM should enter this market at some point down the line. There's no doubt that more and more folks in emerging markets are making a transition to four-wheeled transportation. But there is still a number of people, particularly urban dwellers, who prefer scooters and motorcycles in those markets. Could this be a lost opportunity to reach more customers?
No. Peugeot motorcycles aren't even a fringe player. This is a nothing story. GM build motorcycles (where they have zero - that's right - zero expertise)? Methinks working on the market space where they are currently involved in a take-no-prisoners life and death battle (and have been losing market share for decades) would be a better idea. Remember building cars is what GM does best, actually quite well. Diluting the RenCen braintrust (which presided over this precipitous decline) by having executives juggling yet another ball in the air would be detrimental to say the least. ATP? Perhaps not worth chasing. I could go on....
 

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Peugeot sure could do with some of that hands on India skill & expertise


India is now having the last laugh at Peugeots expense.
 

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With all that being said, it still makes me wonder if GM should enter this market at some point down the line. There's no doubt that more and more folks in emerging markets are making a transition to four-wheeled transportation. But there is still a number of people, particularly urban dwellers, who prefer scooters and motorcycles in those markets. Could this be a lost opportunity to reach more customers?
I know myself personally, I put far more miles per year on my two bikes than I do in my truck. They're just so much easier to get through congested city traffic.

I started riding in the city on bicycles, but as I've gotten older I enjoy having a motor. I know a lot of people like myself. As more and more people move to densely populated cities, motorcycles/scooters make a lot of sense. I think it would be foolish for GM to not be aware of this emerging market.
 

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Peugeot Motorcycles are actually mainly scooters - and this is where the growth is (not in Harley-like choppers). They are quite a sizeable player in the European market, especially in France obviously. Peugeot started making motorcycles after they built their first cars (they are actually the oldest automaker still building cars under the same name, having begun in 1890), but they have been building bicycles for decades before, and their original products were pepper/salt/coffee grinders, which they have been continously making since 1842.
 
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