"Driving the Future: TVS Mobility and Mitsubishi Corporation's Visionary Joint Venture in India's Auto Market

India currently stands as one of the world's leading automobile markets, securing the third position in new car sales globally, trailing behind China and the USA. The growth in this sector is significantly influenced by the pivotal role played by car dealerships, a lucrative avenue for expansion. TVS Mobility and Mitsubishi Corporation are capitalizing on this opportunity through their joint venture.

TVS Mobility, having demerged from T V Sundram Iyengar & Sons Private Limited, is a prominent player in the automotive distribution and aftermarket industry. With over 150 car dealerships in India, it manufactures various aftermarket components for automobiles and operates as a major automotive dealer, representing brands such as Honda, Toyota, Mercedes-Benz, Mahindra, Volkswagen, Ford, among others.

In a strategic move, Mitsubishi Corporation has announced a joint venture with TVS Mobility, initially investing Rs. 300 Crores. This collaboration aims to establish TVS Vehicle Mobility Solution, a venture set to redefine the vehicle ownership experience in India. Mitsubishi Corporation is anticipated to acquire around 30% stakes in TVS Mobility, with a vision to create a comprehensive vehicle mobility ecosystem.

The joint venture targets a wide spectrum, including passenger vehicles, commercial vehicles, and material handling equipment, catering to enterprises, corporations, and fleet owners. The business model also envisions providing solutions to car manufacturers, encompassing vehicle operations, sales, and the vehicle-as-a-service concept. The collaboration anticipates potential revenue of USD 2 billion within the next three to five years.

Pending approval from relevant authorities within the Indian Government, TVS Vehicle Mobility Solution aspires to deliver innovative, digitally enabled solutions to customers. Mr. R. Dinesh, Director of TVS Mobility, emphasized the venture's commitment to offering integrated solutions across vehicle sales, operation, and vehicle-as-a-service, collaborating closely with various stakeholders.

Mr. Shigeru Wakabayashi, CEO of the Automotive and Mobility Group at Mitsubishi Corporation, highlighted India's significant market potential, with the investment expanding their coverage to develop comprehensive mobility solutions. The collaboration not only focuses on after-sales services and multi-brand sales but also embraces the vehicle-as-a-service model and other automotive operations in response to India's burgeoning automotive market.