Mitsubishi to acquire 30% of TVS Mobility to venture into Indian car sales market
Leveraging TVS Mobility's existing network of around 150 outlets, the venture is poised to become one of the largest independent car dealerships in India.
Japanese giant Mitsubishi Corporation is set to enter the Indian car sales market this summer by acquiring a stake of more than 30 percent in car dealership TVS Mobility, as per a Nikkei Asia report.
Mitsubishi's investment, anticipated to range between 5 billion to 10 billion yen ($33 million to $66 million), is contingent on obtaining regulatory approval. Following approval, Mitsubishi plans to dispatch its employees to collaborate with the dealership.
Strategic Partnership with TVS Mobility
In a strategic move, Mitsubishi will collaborate with TVS Mobility, a significant player in India's car sales sector. As part of the agreement, TVS Mobility will spin off its car sales business, with Mitsubishi securing an interest of more than 30 percent in the new entity.
The newly formed company plans to establish exclusive stores for each car brand. Leveraging TVS Mobility's existing network of around 150 outlets, the venture is poised to become one of the largest independent car dealerships in India.
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Focus on Japanese Car Brands, Including EVs
India, the world's third-largest market for new car sales, following China and the United States, has seen limited participation from Japanese automakers, with Suzuki Motor being an exception. Mitsubishi aims to enhance its presence by selling both Japanese and local car brands through the newly formed company, the report added.
The initial focus of the dealership will be on expanding sales of Honda cars, a brand already handled by TVS Mobility. Mitsubishi will lead negotiations with Japanese automakers, aiming to diversify the range of Japanese car brands and models in the lineup. The dealership will also offer electric vehicles, aligning with Mitsubishi's belief that this will contribute to the wider adoption of EVs in India.
Mitsubishi also plans to introduce innovative services, such as the ability for customers to schedule maintenance appointments and purchase insurance through a smartphone app. These initiatives are anticipated to contribute to sales expansion, especially as competition intensifies in the Indian market.
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First Published:19 Feb 2024, 10:54 AM IST
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