The new JV between TVS Mobility and Mitsubishi Corporation yields TVS Vehicle Mobility Solution, which is India’s largest independent car dealer
India is currently one of the leading automobile markets in the world. This Asian subcontinent is currently in 3rd place where new car sales are concerned, followed by China and USA. Car dealerships play a crucial role in this growth and having a sizeable presence in this area will prove profitable. That’s exactly what TVS Mobility and Mitsubishi Corporation are doing.
TVS Mobility Mitsubishi JV
Demerged from T V Sundram Iyengar & Sons Private Limited, TVS Mobility is a leading player in automotive distribution and aftermarket industry. The company manufactures a plethora of aftermarket components for automobiles and is a major automotive dealer, currently operating more than 150 car dealerships in India.
TVS Mobility operates car dealerships for Honda, Toyota, Mercedes-Benz, Mahindra, Volkswagen, Ford among others. Now, the Japanese conglomerate, Mitsubishi Corporation, has announced a joint venture with TVS Mobility. In this joint venture, Mitsubishi is initially investing Rs. 300 Crores with both companies pledging to support this venture’s growth.
TVS Mobility’s dealership business will spin off under this joint venture with Mitsubishi Corporation to form TVS Vehicle Mobility Solution. Mitsubishi Corporation seems to be acquiring around 30% stakes in TVS Mobility with an ambition to establish a comprehensive vehicle mobility ecosystem in India.
This joint venture aims to redefine vehicle ownership experience for Indian car buyers and the companies claim that there is a potential to earn USD 2 billion in revenue within the next three to five years of time span. This deal is currently under the approval stage by relevant authorities within the Indian Government.
TVS Vehicle Mobility Solution will cater to passenger vehicles, commercial vehicles and even material handling equipment and provide to enterprises, corporations and fleet owners. This business model also aims to provide solutions to car manufacturers for operating of vehicles, vehicle sales and vehicle-as-a-service.
Management Speak
Mr. R. Dinesh, Director, TVS Mobility, said “TVS Mobility, had pioneered the sales, service and distribution of vehicles market through its dealership business in India. This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem.”
He further added“ After providing integrated and digital platforms for the independent Aftermarket, the Vehicle Mobility business will provide innovative and digitally enabled solutions to our customers, be it enterprises, corporates or fleet owners and expand our partnership with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles and ‘Vehicle-as-a-Service’ (Micromobility) solutions. This partnership will work closely with other stakeholders to provide a solution for all such stakeholders”.
Mr. 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% 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.”
