New Delhi: Homegrown auto company Mahindra & Mahindra Ltd will introduce scooters from Peugeot Motorcycles in India in a year, Pawan Goenka, executive director of the Indian company said.

“We are working to bring the products to India but the challenge is to bring them at a price when the consumers are willing to pay. The kind of premium you will get even for a European scooter is not very high," Goenka said.

Mahindra, Goenka said, is working to introduce 2-3 scooters from Peugeot Motorcycles in India. “These products will do very well in India if we get the price right in India. It will take at least a year, but we have to work on the business case before that," he added.

Mahindra Two Wheelers Ltd, a unit of Mahindra and Mahindra Ltd (M&M), holds a 51% stake in Peugeot Motorcycles, part of the €54 billion PSA Group based in France.

Mahindra plans to invest a total of €28 million for the majority stake in the unit of the struggling French company. “We see a lot of opportunities for Peugeot in Europe and other markets such as Northern Africa, Vietnam, China. All of these things together will help us increase the spread," Goenka said.

Mahindra has been seeking a place in the heavily crowded two-wheeler segment where sales of its products have declined 38% to 165,444 units during the fiscal ended 31 March while the two-wheeler sector in the same period grew 8.09% to 16 million units.

“Challenges are in any business when there are established players and new players are coming in. The new player will have to put a lot of value proposition in their products. It is very difficult to do that very often," Goenka said when asked about company’s fortunes in the two-wheeler business.

The company plans to introduce the Mojo performance bike in a couple of weeks to build its brand in the market.

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