Mahindra to acquire Peugeot Scooters by the end of this week

Mahindra Two Wheelers, who has recently launched its state-of-the-art scooter- Gusto, is hopping towards its goal as it is probably going to acquire Peugoet's scooter business by the end of this week.

Autocar Professional Magazine says that the company will gradually own the whole of Peugoet's scooter gradually. Earlier, Mahindra acquired 80 percent stake of Pune-based Kinetic Motor Company that accelerated the company's progress vastly.

Peugeot started a financial restructuring drive that might make them to sell off their scooter business. The deal can be considered as a strategic move for the two entities- Peugeot and Mahindra. This move help Peugeot Scooters enter into emerging markets as Mahindra has shown a tremendous growth in scooter segment. The deal will add more value to its sales figures as well as the Indian company will get enhanced technological capabilities and a chance to enter in European market.

The risk for the company multiplies with the following deal as it has to work hard to take Peugeot Scooter to heights, while carry on making its product to make a mark in the extremely competitive markets.

Mahindra grabs only one percent of the total two-wheeler market share of India and with the help of its innovative and affordable offerings like Mahindra Gusto and Centuro, it wants to grab a bigger pie in the Indian market and also aims to export markets like South Asia, Africa and Central America.

Source: Autocar Professional