Under 100 Words: A Compact Summary
TVS Mobility and Mitsubishi Corporation form a strategic partnership, with Mitsubishi acquiring a 32% stake in TVS VMS for Rs 300 crore. The collaboration aims to expand the dealership business and provide comprehensive vehicle mobility solutions in India. TVS Mobility retains 68% ownership and envisions $2 billion in revenue over 3-5 years. Mitsubishi aims to develop extensive mobility solutions in India, while TVS Mobility Group, with a $3 billion annual revenue, holds a significant role in manufacturing, aftermarket services, and auto retail across South Asia (TVS Vehicle Mobility Partners with Mitsubishi Corp).
- TVS Mobility and the Japanese conglomerate Mitsubishi Corporation have revealed a strategic collaboration. As part of this partnership, Mitsubishi Corporation will acquire a 32% stake in a recently established subsidiary of the Chennai-based TVS Mobility for Rs 300 crore.
- Consequently, the dealership operations of TVS Mobility will transform, evolving into the newly-formed subsidiary named TVS Vehicle Mobility Solution (TVS VMS). This subsidiary will provide a comprehensive range of services to its customers.
- TVS Mobility currently possesses dealerships for prominent companies such as Ashok Leyland, Honda, Mahindra, and Renault, among others (TVS Vehicle Mobility Partners with Mitsubishi Corp).
- These dealerships are primarily located in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana, and Madhya Pradesh. TVS Mobility will retain the majority ownership of 68% in the newly-formed subsidiary, TVS Vehicle Mobility Solution (TVS VMS).
- R. Dinesh, Director of TVS Mobility, stated that the newly-formed company is taking over the existing dealership business of TVS Mobility, with Mitsubishi joining the venture to leverage its strengths and assist in scaling up the business in India.
- Dinesh highlighted that Mitsubishi’s involvement will also facilitate expansion into relevant geographies (TVS Vehicle Mobility Partners with Mitsubishi Corp ). According to him, the business model has the potential to generate $2 billion in revenue over the next three to five years.
- Dinesh emphasized that TVS Mobility had been a pioneer in the sales, service, and distribution of vehicles through its dealership business in India, and the collaboration with Mitsubishi will enable TVS to offer a comprehensive range of solutions within the entire vehicle mobility ecosystem.
- Dinesh added, “Following our provision of integrated and digital platforms for the independent aftermarket, the vehicle mobility business aims to deliver innovative and digitally-enabled solutions to customers, including enterprises, corporates, and fleet owners. We plan to extend our collaboration with vehicle manufacturers to offer integrated solutions covering vehicle sales, vehicle operation, and ‘vehicle-as-a-service’ (Micromobility) solutions. This partnership is committed to providing comprehensive solutions to all stakeholders.”
- Shigeru Wakabayashi, CEO of the Automotive and Mobility Group at Mitsubishi Corporation, commented on the latest investment in the multi-brand dealer TVS VMS, stating that it expands Mitsubishi’s investment coverage by enhancing service capabilities (TVS Vehicle Mobility Partners with Mitsubishi Corp ).
- He expressed that this move aligns with Mitsubishi’s goal to develop comprehensive mobility solutions, encompassing not only after-sales services and multi-brand sales but also vehicle-as-a-service models and other automotive operations.
- India, boasting the world’s third-largest market for new automobiles with sales surpassing 5 million vehicles in 2023, is anticipated to witness a growth of 6-7% in the coming years (TVS Vehicle Mobility Partners with Mitsubishi Corp).
- In a strategic move to establish a stronger presence in the rapidly expanding Indian market, Mitsubishi has been cultivating its relationship with the TVS Mobility group (TVS Vehicle Mobility Partners with Mitsubishi Corp ). This collaboration extends to investments in the after-sales services provider, TVS Automobile Solutions (TASL).
- The TVS Mobility Group serves as the holding company for businesses overseen by the T S Rajam family members (TVS Vehicle Mobility Partners with Mitsubishi Corp ). With a combined annual revenue of approximately $3 billion in the mobility sector, the group encompasses manufacturing, a platform for parts distribution and services in the independent aftermarket, as well as auto retail operations in India, Sri Lanka, and Bangladesh.
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