Source: Supplied.

Peugeot will enter the Moto3 World Championship in 2016, replacing Honda as the engine supplier of SAXOPRINT Racing Team Germany in an official factory capacity.

The team will retain the services of experienced Frenchman Alexis Masbou for next season, while a second rider is still to be signed and announced.

It’s understood the Peugeot powerplants will be rebranded Mahindra motors for next year after the Indian company purchased 51 percent shares in Peugeot’s scooter/motorcycle division.

Terrell Thien has been named SAXOPRINT RTG team manager with immediate effect, while Dirk Heidolf will take care of the Peugeot junior team, consisting of multiple riders in the FIM CEV Repsol series.