Mahindra & Mahindra and PSA Peugeot Citroën are in talks for a strategic alliance involving technology sourcing, mutual sharing of production capacity in France and India as well as “significant investments”, The Economic Times said, citing industry sources.
Mahindra refused to comment on the news but PSA Peugeot said: “PSA has recently implemented a new organisation by region. The India-Pacific region shows how important the Indian market is to PSA in the future. But at this stage there are no discussions under way for a rapid return to India.”
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Under the alliance, Mahindra would source engine technology, particularly diesel engine and diesel-hybrid technology, from Peugeot for its next-generation platforms, the newspaper said. Peugeot would use Mahindra’s factories in India, while Mahindra would use Peugeot’s European plants. Mahindra might also make a “significant investment” in Peugeot, however, whether Peugeot would do the same is not yet known.
The sources also said: “It’s not clear where [PSA Chinese partner] Dongfeng figures in these talks and if they would be interested in Peugeot going in for a deep and multi-pronged tie-up with another automotive major. That and the Peugeot family’s own ownership and control interests would be important factors in deciding the fate of the alliance talks.”
