Rumour: Mahindra to become co-owner of Peugeot scooters

Mahindra Two Wheelers is rumoured to be in the process of striking a deal with Peugeot, which will make it co-owner of the French manufacturer's scooter business. A report by Autocar Professional suggests that Mahindra could acquire a majority stake and later, even go on to become the full owner of the business.

Mahindra had entered the scooter business by acquiring an 80 percent stake in Kinetic Motor Company. However, the company remains a marginal player in the Indian two-wheeler market and is struggling to survive in the highly competitive environment. With the acquisition of Peugeot's scooter division, it expects to enhance its technological capabilities and also gain entry to European markets.

Peugeot has been restructuring its business. Its scooter business has been making losses, which has prompted the company to sell its stake in it. A Mahindra takeover could give Peugeot scooters access to emerging markets.

An announcement regarding the deal between Mahindra and Peugeot is likely to take place later this week.