Peugeot to Sell Scooter Division to Mahindra

Peugeot Metropolis 1 photo
Photo: Peugeot
Peugeot Citroën Automobile Group (PAS) is said to prepare to dump its scooter division, as part of a strategic plan to try and cut down the financial losses the corporation has been confronting for years now. The buyer of Peugeot’s scooter actives is rumored to be the Indian automotive manufacturer Mahindra & Mahindra, according to France Press, quoted by the French newspaper Le Parisien.
Even though PSA sold around 79,000 scooters in 2013, which represents an 8.2% increase in sales, it looks like this is nowhere near enough to cover for the big losses the company has sustained over the years. In early April 2014 Peugeot has brought over Carlos Tavares from direct competitor Renault and appointed him as CEO, with the main goal being to eliminate as much as possible from the financial leaks.

In fact, one of the Peugeot engine plants has been recently closed down to amass the French production around the group’s facility in Mandeure. Peugeot Motorcycles currently employs around 500 people in France, with 300 more working in a joint venture facility in China. Also as an effort to put up a stronger competition to the Italian rivals at Piaggio, Peugeot went the extra mile and came up with the Metropolis three-wheeled scooter, but still, it appears like the motorcycle department of the French is still underperforming. Wondering whether Peugeot will also sell the electric scooter business...

PSA’s spokesman Jean-Baptiste Thomas was secretive about this affair as he only said that “this is a rumor we do not comment”, but we will definitely not be surprised to learn about the sale this year. If Mahindra gets hold of Peugeot, this step will be a very important one in their battle with the rest of the local manufacturers in the thriving and huge Indian market, where Hero and Honda seem to be the leading brands.
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