India is one of the world’s largest vehicle markets right now. In terms of new car sales, this Asian the island is currently in third place, behind China and the United States. Automobile dealerships are essential to this expansion, and it will be beneficial to have a large presence in this sector. That is exactly what Mitsubishi Corporation and TVS Mobility are doing.
TVS Mobility and Mitsubishi Joint Venture:
TVS Mobility, which separated from T V Sundram Iyengar & Sons Private Limited, is a major force in the aftermarket and vehicle distribution sectors. The company is a large automotive dealer that currently operates over 150 car dealerships in India in addition to manufacturing a wide range of aftermarket components for autos.
TVS Mobility manages automobile dealerships for many brands, including Ford, Volkswagen, Mahindra, Mercedes-Benz, Honda, and Toyota. Mitsubishi Corporation, a Japanese company, has recently established a joint venture with TVS Mobility. Mitsubishi is investing Rs. 300 crores in this joint venture initially, and both firms have committed to helping the venture expand.
Under this joint venture with Mitsubishi Corporation, TVS Mobility’s dealership division will separate to become TVS Vehicle Mobility Solution. The goal of Mitsubishi Corporation appears to be building a full automotive mobility ecosystem in India by acquiring about 30% of TVS Mobility.
The firms claiming potential revenue of USD 2 billion within the next three to five years, this joint venture seeks to transform the car ownership experience for Indian car consumers. The Indian government’s appropriate agencies are currently reviewing and approving this arrangement.
TVS Vehicle Mobility Solution will serve businesses, organizations, and fleet owners by providing services for passenger cars, commercial vehicles, and even material handling equipment. Additionally, this business model seeks to offer automakers solutions for vehicle operations, sales, and vehicle-as-a-service.
Management Words:
“TVS Mobility had pioneered the sales, service, and distribution of vehicles market through its dealership business in India,” stated Mr. R. Dinesh, Director of TVS Mobility. TVS will be able to offer a number of solutions for the whole vehicle mobility ecosystem thanks to this partnership with MC.
“The Vehicle Mobility business will provide innovative and digitally enabled solutions to our customers, be it enterprises, corporates, or fleet owners,” he continued. “We will also expand our partnership with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles, and ‘Vehicle-as-a-Service’ (Micromobility) solutions.” He had previously provided integrated and digital platforms for the independent Aftermarket. To provide a solution for all of these stakeholders, this collaboration will collaborate closely with others.
“India has the world’s third-largest market for new automobiles with sales topping five million vehicles in 2023 and expected to grow at 6-7% in the next few years,” stated Mr. Shigeru Wakabayashi, CEO of Mitsubishi Corporation’s Automotive and Mobility Group. MC has been developing its partnership with TVS Mobility group, including the investment in the after-sales services provider TVS Automobile Solutions (TASL), in order to obtain a downstream footing in the quickly expanding Indian market.
The most recent investment in the multi-brand dealer TVS VMS expands MC’s coverage for investments through improved service capabilities and should advance its goal of creating comprehensive mobility solutions that cover not only multi-brand sales and after-sales services but also vehicle-as-a-service and other automotive operations.
