Mitsubishi plans a return to India by acquiring a 30 percent stake in TVS Mobility!

The renowned Japanese brand Mitsubishi is gearing up for a significant re-entry into the Indian automotive market this summer, with plans to collaborate with TVS Mobility by acquiring approximately 30 percent ownership in the company’s car dealership.

According to details shared by Nikkei Asia, Mitsubishi is expected to invest between 5 billion to 10 billion yen ($33 million to $66 million) for this venture. Once the investment is finalized and approved, the company will begin deploying its staff to various dealerships across the country.

TVS Mobility, a subsidiary of the TVS Group involved in automotive retail and aftermarket businesses, has forged its second partnership with Mitsubishi Corp. As part of this collaboration, the Japanese conglomerate will invest Rs 300 crore for a 32% stake in TVS Vehicles Mobility Solutions (TVS VMS), a newly established subsidiary.

This alliance aims to establish a comprehensive vehicle mobility ecosystem in India, as stated by TVS Mobility in a recent statement. The transaction is contingent upon regulatory approval.

Under the agreement, TVS Mobility’s dealership operations will transition to TVS VMS. Currently, TVS Mobility manages dealerships for various automotive brands, including Ashok Leyland, Mahindra Trucks & Buses, Renault, and Honda Cars India, among others, across different states in India.

“TVS VMS aims to provide innovative and digitally-driven solutions to its customers, including enterprises, corporates, and fleet owners. The partnership intends to expand its collaboration with vehicle manufacturers, offering integrated solutions for vehicle sales, operations, and ‘Vehicle-as-a-Service’ (Micro-mobility) solutions,” stated R Dinesh, director of TVS Mobility.

He further elaborated that the investment is aimed at advancing the vision of both companies regarding vehicle ownership in passenger cars, commercial vehicles, and material handling equipment (MHE). The projected business model has the potential to achieve revenue of $2 billion within the next three to five years.

With approximately 1,700 group companies worldwide, Mitsubishi plans to leverage its global expertise and share best practices to accelerate the growth of this business model. Additionally, Mitsubishi is already an investor in TVS Mobility’s after-sales services division, TVS Automobile Solutions.

Shigeru Wakabayashi, CEO of the Automotive and Mobility Group at Mitsubishi Corp., expressed that this latest investment in TVS VMS broadens Mitsubishi’s investment portfolio by enhancing service capabilities. This move aligns with Mitsubishi’s goal to develop comprehensive mobility solutions encompassing after-sales services, multi-brand sales, vehicle-as-a-service models, and other automotive operations.

Mitsubishi’s Background in India

Mitsubishi ventured into India during the early 1990s as the country opened its economy to foreign investments. Its first offering, the Mitsubishi Lancer sedan, entered a competitive market alongside models like the Honda City, Maruti Suzuki Esteem, Hyundai Accent, Ford Ikon, and Tata Indigo. Despite stiff competition, the Lancer remained a popular choice, leading Mitsubishi to introduce newer variants over time. The partnership with Hindustan Motors (HM), an established Indian car manufacturer, was instrumental in Mitsubishi’s growth in the Indian automotive industry.

Alongside the Lancer, Mitsubishi introduced models like the Pajero, renowned for its ruggedness and off-road capabilities, along with the Cedia, Outlander, and Montero.

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