Mahindra and Mahindra to partner with TVS Automobile Solutions for integrating its Mahindra First Choice Service business
Mahindra First Choice Services Ltd. (MFCSL), a pan-India chain of multi-brand car and two-wheeler service workshops, part of the $19.4 bn Mahindra Group, today announced a plan to integrate its operations with TVS Automobile Solutions Pvt. Ltd., (TVS ASPL), India's leading independent automotive aftermarket player. The move will enable the respective organisations to combine their strengths to organise the highly fragmented automobile aftermarket services space in India, thereby providing superior value to customers, channel partners, employees and other stakeholders.
MFCSL will partner with TVS Automobile Solutions, which houses 'myTVS,' a multi-brand independent automobile aftermarket brand that offers integrated solutions across the aftermarket value chain. As part of the transaction, Mahindra and Mahindra Ltd. will secure a stake in TVSASPL and in turn, MFCSL will become a subsidiary of TVS ASPL. The transaction is subject to regulatory approvals, including an approval from the Competition Commission of India (CCI).
Says Mr. R. Dinesh, Director, TVS Automobile Solutions Pvt. Ltd., "I am delighted with this deal as two great brands have come together for the benefit of the overall aftermarket ecosystem. India's $10 bn aftermarket segment is fragmented and needs strong support for relevance and growth amidst changing technology landscape in the automotive sector. We would take this opportunity to bring thousands of entrepreneurs into a digital platform wherein they can get benefited from digital technologies across marketing, diagnostics, customer experience, quality parts, access to training and digital payments. I am sure this partnership will be a win-win proposition for all the stakeholders."
Mr. V S Parthasarathy, President, Mobility Services Sector, Mahindra Group said, "MFCSL has developed a large, trusted, multi-brand car service franchise and distribution network over the years. Our focus on quality and customer satisfaction has ensured that we continue to deliver superior value to our customers and channel partners. I believe that consolidation, scale and phygital solutions will drive the next phase of growth for the company as well as the industry. I am confident that a strong partner like TVS ASPL will help take our legacy further and propel the company to the next orbit. I applaud the commitment and passion of our franchisees, distributors and employees and seek their support as we embark on the next phase of the journey."
Mr. G. Srinivasa Raghavan, Managing Director, TVS ASL added, "myTVS has created a digital platform and ecosystem for over 2,500 garages especially across South India. With MFCSL, we will have an opportunity to create a pan India digital footprint. We will continue to invest and expand our network to over 10,000 garages in the next 18-24 months. It is imperative that we take this positioning to help organize the fragmented garage ecosystem so that we can continue to provide superior customer experience to the growing automotive population and help these garages by making them future ready."
The Indian independent automotive aftermarket has been growing at a CAGR of 7-10% over the past five years. The market is highly fragmented with over 40,000 retailers, 100,000 garages and thousands of small distributors across the country. MFCSL has established a highly reputed pan-India network of 475+ franchise partners and 100+ distributors present in over 350 towns across 25 states and 2 union territories. TVS ASL, over the years, has established a strong leadership by empowering over 2 million customers, 20,000 retailers, 10,000 garages along with fleet management for over 70,000 vehicles. By bringing these stakeholders into a seamless supply chain and technology platform, TVS ASL ensures delivery of service or parts within 24 hours across the country.