Chennai, Jan 8 (IANS): Mahindra Two Wheelers Ltd is hoping to complete the process of acquiring 51 percent stake in French two wheeler maker Peugeot Motorcycles by early next month, said a senior company official Thursday.
"The Peugeot deal is in progress. Beginning of February, all hurdles are to be cleared," Viren Popli, chief of operations at Mahindra Two Wheelers Ltd, told reporters at the launch of the company's Gusto scooter here.
However he declined to comment on as to when Peugeot branded scooters would be launched in India by the M&M group.
The unlisted subsidiary of Mahindra & Mahindra Ltd (M&M) last October has made a binding offer to acquire 51 percent stake in Peugeot Motorcycles generally known as Peugeot Scooters and part of the PSA Group.
The transaction between Mahindra Two Wheelers and PSA is subject to Works Council consultation, as part of the employee dialogue process and anti-trust law, the Indian company had said earlier.
The deal also would involve infusion of euro 15 million into Peugeot Motorcycles to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow the Indian company to take a 51 percent stake in Peugeot Motorcycles.
Speaking of new product plans, Popli said the company is working to launch its 300 cc Mojo bike and also launch new models to fill up the portfolio range.
Though Mahindra Two Wheelers ships out its motorcycles and scooters, Popli said the primary focus is to have an entire range of two wheelers and then look at the global markets.
He said the interesting feature of the Indian two wheeler market is that each big player commands one market segment and there is no one single player who has an overall major share cutting across the segments.
Popli said Mahindra Two Wheelers is hoping to increase its sales numbers by offering differentiated products and not just 'me-too' models citing Gusto which has new features like adjustable seats, remote flip keys, find-me and guide-me lamps and others.
According to him, the company has sold around 120,000 two wheelers till now this fiscal in which Gusto's contribution is around 10,000 units.
The Gusto was launched in north India in September last year and soon it would be launched in other regions.