Mahindra to Introduce Peugeot Scooters to rival Vespa

In a bid to strengthen its presence in the Indian two-wheeler market, Mahindra two-wheelers limited is planning to introduce Peugeot Scooters in the country. The Indian manufacturer holds the majority of stakes in the French two-wheeler company. With the launch of its150cc scooters, the company will take on the Vespa 150cc scooters. 

Commenting on the introduction of Peugeot Motorcycles, Dr Pawan Goenka said, “We can look at PMTC production coming to India, which are working on right now. We will look at sourcing, synergy between PMTC and Mahindra 2W.” He further stated,  “Peugeot is a very strong brand a company that is currently not doing very well, but a company in which we see tremendous potential to come to find the value they bring to our two-wheeler business and to create the value.”

“Vespa and Peugeot go head-to-head in Europe. Vespa has to rationalise prices to sell in India; the price is not even half of what it is in Europe. Unless Mahindra is able to do that, there will be no takers,” he added.  

Earlier in 2015, Mahindra Two-wheelers paid Rs. 208 crore to acquire 51 % of the stakes in Peugeot Motorcycles (PMTC). Mahindra & Mahindra is in the process of synergising operations between MTWL (Mahindra Two-Wheelers Ltd.) and Peugeot Motorcycles (PMTC). Besides entering into the scooters segment, the Indian automaker is also looking at joint sourcing to optimise operations in the company. 

Moreover, the company is all set to launch a 125cc version of its highest selling scooter, the Gusto anytime soon. The present generation Gusto is powered by 110cc engine and the launch of the 125cc scooter will further help the company to compete in the 125cc scooter segment as well. At the same time, the company is rumoured to be working on another 150cc premium commuter, which might arrive during the upcoming festive season.