Mahindra Two Wheelers Europe, a Mahindra subsidiary, is set to seek full control of Peugeot Motorcycles (PMTC) for an undisclosed amount, the company said in a notification to the exchanges.
The move, it said, "reaffirms the commitment" of the group to future growth of the French company. The subsidiary currently holds 51 per cent in PMTC. It entered into the collaboration with PMTC, part of Groupe PSA in January 2015. Even after the buyout, the Peugeot brand will continue to be used under the trade licence agreement between PMTC and Peugeot. In addition, the Peugeot design teams will continue to assist in the design and development of PMTC products.
Mahindra's Europe subsidiary and the PMTC team have worked together on re-organising and building the ‘Performance 2020’ plan, which was unveiled in July 2018, the company said. It lays foundation to strengthen company's operations and drive growth in core European markets while expanding into new geographies, including select Asian markets.
Rajesh Jejurikar, president – farm equipment services and Two Wheelers at Mahindra, said the firm was seeing positive momentum at Peugeot Motocycles with Kisbee, the 50cc vehicle in Europe becoming the largest selling 50cc vehicle in Europe.