Mitsubishi set to re-enter India by acquiring 32 percent of TVS Vehicle Mobility Solution
TVS Mobility has launched a joint venture with Japanese conglomerate Mitsubishi Corporation, to build a comprehensive automotive mobility ecosystem in India. With this, TVS Mobility's dealership business will transition into TVS Vehicle Mobility Solution (TVS VMS), providing its clients with a comprehensive range of services.
Under the arrangement, TVS Mobility, which operates dealerships across India, would spin off its car sales company, with Mitsubishi owning a 32 percent ownership in the new organization.
Mitsubishi would make an initial investment of Rs 300 crore, with both parties committed to supporting the venture's growth. This venture is designed to further the parties' vision for vehicle ownership in passenger cars, commercial vehicles, and material handling equipment (MHE). The business concept has the potential to generate 2 billion US dollars in revenue over the next three to five years.
Mitsubishi intends to join the electric car industry in India with EVs being sold at the new dealerships. According to a Reuters article in May 2023, Mitsubishi Electric Corp. stated that it will invest 231.2 million US dollars to establish a manufacturing facility in Tamil Nadu.
Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation said, "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 percent in the next few years. To gain a downstream foothold in the rapidly growing Indian market, MC has been fostering its relationship with TVS Mobility group including the investment in the after-sales services provider TVS Automobile Solutions (TASL). The latest investment in the multi-brand dealer TVS VMS widens MC's investment coverage through enhanced service capabilities even further and should propel its aim to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also vehicle-as-a-service model, and other automotive operations."