Mahindra to Buy Peugeot’s Scooter Business?

Mahindra & Mahindra Ltd. is close to a deal to acquire PSA Peugeot Citroen's unprofitable scooter unit, sources tell Bloomberg News.

Mahindra, best known for its tractors and SUVs, began making scooters in 2008. Buying Peugeot Motocycles would give the Indian company access to technology that could help it compete with such rivals as Honda and Hero MotoCorp.

Bloomberg notes that Mahindra's two-wheeler sales nearly doubled in the fiscal year ended March 31. Consumers in India buy about six times as many scooters and motorcycles as four-wheel vehicles.