Report - Mahindra and Peugeot mulling an alliance

According to a newspaper report, Mahindra & Mahindra and Peugeot are looking to enter into a strategic alliance which could see both the brands benefiting from several synergies.

According to top industry sources, a high level management team from Mahindra has already visited Peugeot's head quarters in Paris to hold talks regarding the alliance. While Mahindra has not issued a statement in this regard, Peugeot stated that the Indian market remains to be in its focus but no discussions are underway for a rapid return to the sub-continent.

If the alliance takes shape, it would involve technology sourcing and mutual sharing of production facilities. Peugeot which aborted its plans to enter India with an INR 4,000 cr plant at Sanand, after the ground breaking ceremony, could use the possible partnership with Mahindra to make a comeback.

Mahindra could permit Peugeot to use its Indian production facilities in exchange for having manufacturing presence in Europe using the French automaker's infrastructure. Further, Mahindra could source diesel engines and hybrid technologies from Peugeot. Its to be noted that the Indian automaker has a history of sourcing diesel engines from Peugeot.

The PSA Peugeot Citroen Group is undergoing a comprehensive restructuring process. A tie-up with Mahindra would be mutually beneficial as far as manufacturing presence is concerned. It is also reported that Mahindra could invest in Peugeot.

[Source: Times Of India]