Mahindra Two Wheelers Europe, the Indian owner of brands such as BSA and a division of the huge Mahindra & Mahindra automotive conglomerate, has converted its 51% ownership stake in Peugeot Scooters into 100% ownership effective October 2019.
Mahindra has agreed to acquire all outstanding shares in scooter manufacturer Peugeot Motocycles (PMTC) from French automotive giant Groupe PSA, parent of the Peugeot, Citroen, Vauxhall and Opel car brands, for an undisclosed sum - taking full control of the business just as PSA itself announced its merger with Fiat Chrysler.
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Based at Mandeure in France, PMTC was founded in 1898 and claims to be the world's oldest motorcycle manufacturer. Most famously, a Peugeot engine took Rembrandt Fowler's Norton-badged machine to victory at the first-ever Isle of Man TT race in 1907.
Mahindra originally bought a majority 51% stake in PMTC during 2015 for £24m. In addition to owning the legendary BSA brand, Mahindra has rights to use the Czech Jawa brand in India. Mahindra will continue to employ the Peugeot name on PMTC products when assuming ownership of the company through a trade licensing agreement with PSA.
BDN reports that "PMTC was unprofitable at the time of the 2015 partial takeover and has been bleeding money ever since. Accumulated losses reached £111m by the end of 2018, when Mahindra Two Wheelers' management "right-sized" the French factory's workforce by making a fifth of them redundant. Hopes for a turnaround rest on a recent £10m investment to develop a Peugeot branded electric scooter, produced by Mahindra in India for the European market".
Mahindra Two Wheelers Europe and the PMTC team unveiled a "Performance 2020" plan in July 2018, backed by a "robust investment plan" which includes the launch of seven new products between 2019 and 2021.
Rajesh Jejurikar, President FES and Two Wheelers and a member of the Mahindra & Mahindra Ltd. Group Executive Board, is quoted as saying: "We are seeing positive momentum at Peugeot Motocycles. The Kisbee is becoming the largest selling 50 cc vehicle in Europe, the Peugeot Metropolis getting stronger in Europe and China, and the positive market response to the launch of the new Urban GT connected Pulsion all point to a positive future. We fully support PMTC's 'Performance 2020' and look forward to the future with enhanced optimism."
Jean-Philippe Imparato, Executive VP for the Peugeot brand, said: "This decision by the shareholders will ensure that Peugeot Motocycles benefits from the expertise of a significant global player in the two-wheeler industry. We at Peugeot will maintain our commitment through our utilisation of the Peugeot brand and extend our support to design and technological innovations."
The Peugeot brand will continue to be used in the future by Mahindra 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.
