New Delhi: Mahindra & Mahindra (M&M), the market leader in India's tractors and utility vehicles segments, is in advanced talks to buy PSA Peugeot Citroen's scooter business, according to a Bloomberg report.
"An announcement may be made soon," the agency quoted two people as saying.
The purchase would give Mahindra, which began making scooters in 2008, access to Peugeot's technology as it seeks to compete with Hero MotoCorp and Honda Motor in India's two-wheeler market.
A notice by the company to BSE said, "The company wishes to clarify it examines/pursues various opportunities in different areas from time to time on a continuous basis; it is not practicable to comment upon every opportunity at every stage. It is not in a position to confirm or deny the veracity of the news, given its policy of not commenting on speculative news/reports emanating from such activity."
The move is considered to be a big step by Peugeot chief executive officer Carlos Tavares, who took charge in March and is tasked with returning Europe's second-largest automaker to profit. Peugeot's scooter unit, which has posted losses for a decade, sold 79,000 vehicles last year, a gain of 8.2 per cent. The unit employs nearly 500 people in France and 300 people at a joint venture in China.
