TVS Mobility & Mitsubishi Forge Alliance to Revolutionize India's Automotive Landscape

Key Highlights

• TVS Mobility and Mitsubishi JV form TVS Vehicle Mobility Solution
• Potential revenue of USD 2 billion in 3-5 years
• Diverse services for passenger vehicles, commercial vehicles, and more
• Focus on innovative solutions, including the 'Vehicle-as-a-Service' model
• Collaboration strengthens Mitsubishi's foothold in India
• TVS Mobility's extensive dealership portfolio contributes to the venture's success.

In a strategic move to capitalize on India's burgeoning automobile market, TVS Mobility and Mitsubishi Corporation have announced a joint venture that will result in the creation of TVS Vehicle Mobility Solution. The partnership aims to establish the largest independent car dealership in India, catering to a diverse range of automotive needs.

TVS Mobility’s Impressive Portfolio

Demerged from T V Sundram Iyengar & Sons Private Limited, TVS Mobility has carved a niche for itself in the automotive distribution and aftermarket industry. With over 150 car dealerships across the country, the company boasts a robust presence in the market, dealing with major brands such as Honda, Toyota, Mercedes-Benz, Mahindra, Volkswagen, and Ford.

Mitsubishi Corporation's Strategic Investment

Mitsubishi Corporation, a Japanese conglomerate, is set to invest Rs. 300 Crores in the joint venture, marking its foray into the Indian automotive sector. This investment reflects Mitsubishi's commitment to acquiring approximately 30% stakes in TVS Mobility, with an ambitious plan to create a comprehensive vehicle mobility ecosystem.

Redefining Vehicle Ownership Experience

The newly formed TVS Vehicle Mobility Solution aims to redefine the vehicle ownership experience for Indian car buyers. The joint venture envisions generating USD 2 billion in revenue within the next three to five years. Currently awaiting approval from relevant Indian authorities, the collaboration seeks to revolutionize the automotive landscape.

Diverse Offerings from TVS Vehicle Mobility Solution

TVS Vehicle Mobility Solution will not only cater to passenger vehicles but also extend its services to commercial vehicles and material handling equipment. The target audience includes enterprises, corporations, and fleet owners, offering innovative solutions in vehicle sales, operations, and 'Vehicle-as-a-Service.'

Management Insights

Mr. R. Dinesh, Director of TVS Mobility, expressed enthusiasm about the collaboration, stating, "This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem." He emphasized the aim to expand partnerships with vehicle manufacturers and provide integrated solutions.

Mr. Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation, highlighted India's growing automobile market and outlined their strategic investment to develop comprehensive mobility solutions. The joint venture aligns with Mitsubishi's goal to strengthen its presence in India's rapidly expanding automotive sector.

Also Read: Volkswagen India Actively Seeking Collaborations: Open to Stake Dilution

CarBike360 Says

As the TVS Mobility and Mitsubishi Corporation joint venture progresses through the approval stage, industry observers eagerly anticipate the transformative impact on India's automotive landscape.

Source: Rushlane