Utility vehicles maker Mahindra & Mahindra is gearing up to enter Europe this September through a tie-up with Peugeot of France for supply of engines and with Eurasia Motors of Italy for assembly and distribution of the Bolero GLX, Scorpio and its single and double cab pick-up trucks, according to a report in The Times of India.

The report says that the company has already identified Italy, Spain, ex-Yugoslavian countries, France and UK as focus markets and is currently working on upgrading its manufacturing facilities to manufacture Euro 3 emission norm compliant vehicles for the European markets.

The vehicles will be shipped in the semi-knocked down form but without the engine, which would be sourced from Peugeot and fitted in Italy by assembler Eurasia as per a tripartite agreement, after which the vehicles will be sold under the Mahindra brand name but without the model names Bolero or Scorpio.

In fact, M&M is in the final stages of identifying Euro 3 engines from the Peugeot family for these vehicles, according to the report. The report also says that the European export drive will first target Italy followed by Spain and Yugoslavian countries and later France.

In the second phase, M&M plans to enter the UK market by March 2004 with Bolero and pick-up trucks. M&M expects sales of over 2,000 vehicles per annum in the European markets over a period of next two to three years, according to the report.