RUEIL-MALMAISON, France--(BUSINESS WIRE)--Regulatory News:
Mahindra Two Wheelers Europe, a subsidiary of Mahindra & Mahindra Ltd. (M&M Ltd), part of the USD 20.7 billion Mahindra Group headquartered in Mumbai, India and Groupe PSA (Paris:UG), today announced that Mahindra Two Wheelers Europe will acquire all outstanding shares in Peugeot Motocycles (PMTC). This reaffirms the commitment of the Mahindra Group to the future growth of Peugeot Motocycles, headquartered in Mandeure, France.
Earlier in January 2015, Mahindra Two Wheelers Europe had acquired a 51% equity stake in PMTC from PSA with the aim of growing the business.
Mahindra Two Wheelers Europe and the PMTC team have worked together on reorganizing and building the ’Performance 2020’ plan, which was unveiled in July 2018. It lays the foundations to strengthen the company’s operations to achieve future growth in core markets such as the G7 (Europe), while expanding into new geographies, including select Asian markets.
This growth plan is backed by a robust investment plan which includes the launch of seven new products between 2019 and 2021. The brand’s presence in Europe will be fortified, with France remaining a major market and PMTC’s headquarters still based in its historical location, Mandeure.
Rajesh Jejurikar, President FES & ‘two wheelers’, and Member of the Group Executive Board, Mahindra & Mahindra Ltd., said: “We are seeing positive momentum at Peugeot Motocycles. Kisbee becoming the largest selling 50cc vehicle in Europe, Peugeot Metropolis getting stronger in Europe and China, the positive market response to the new launch of the Urban GT connected Pulsion, are all cases in point. We fully support PMTC’s ‘Performance 2020’ and look forward to the future with enhanced optimism.”
According to Jean-Philippe Imparato, Executive VP Peugeot Brand, “This decision by the shareholders will ensure that Peugeot Motocycles benefits from the expertise of a significant global player in the two wheelers industry. We at Peugeot will maintain our commitment through our utilization of the Peugeot brand and extend our support to design and technological innovations.”
The Peugeot brand will continue to be used in the future under the Trade License Agreement between PMTC and Peugeot. In addition, the Peugeot design teams will continue to assist in the design and development of PMTC products in close cooperation with PMTC management and the Mahindra Group. For instance, the Peugeot 308 i-Cockpit® technology was introduced recently with the launch of the Peugeot Pulsion in its two-wheeler version i-Connect.
The Mahindra Group has a diverse portfolio of businesses, including the Two-Wheeler Division and markets products under several brands including the Peugeot Brand. The transaction will be completed after due process.
The Mahindra Group is a USD 20.7 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It enjoys a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company, by volume. It also enjoys a strong presence in agribusiness, aerospace, commercial vehicles, components, defense, logistics, real estate, renewable energy, speedboats and steel, amongst other businesses. Headquartered in India, Mahindra employs over 2,40,000 people across 100 countries.
About Groupe PSA
Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all customer expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall and provides a wide array of mobility and smart services under the Free2Move brand. Its ‘Push to Pass’ strategic plan represents a first step towards the achievement of the Group’s vision to be “a global carmaker with cutting-edge efficiency and a leading mobility provider sustaining lifetime customer relationships”. An early innovator in the field of autonomous and connected cars, Groupe PSA is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.