MUMBAI--Indian automobile maker Mahindra & Mahindra Ltd. is in advanced talks to buy French auto maker PSA Peugeot Citroën's scooter unit, a person familiar with the discussions said late on Tuesday.

If the acquisition goes through, it could provide Mahindra access to new markets and technologies to develop new products.

A Mahindra spokesman declined to comment, while a Peugeot spokesman didn't respond to requests for comment.

Mumbai-based Mahindra is India's leading maker of sport-utility vehicles and tractors. Mahindra entered India's two-wheeler market in 2008, when it bought assets of Kinetic Motor Co.

If Mahindra buys the French company's scooter unit, it could help bolster the Indian group's presence in the two-wheeler market and allow it to compete better with companies like Hero MotoCorp Ltd., India's largest motorcycle seller, and Honda Motor Co, which is the largest seller of scooters in India.

News of the talks was first reported by Bloomberg.

Santanu Choudhury, in Delhi, and Noémie Bisserbe, in Paris, contributed to this article.

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