To create a complete ecosystem for vehicle mobility, TVS Mobility has announced a collaboration with Mitsubishi Corporation.
Under this collaboration to create a new vehicle mobility ecosystem in India the dealership business of TVS Mobility will transform into TVS Vehicle Mobility Solution (TVS VMS) and Mitsubishi Corporation will invest Rs 300 crores.
The duo aims to offer a suite of services to its customers and envisions transforming the Indian automotive landscape and marking a growth in vehicle mobility.
Inside the Agreement Between TVS Mobility and Mitsubishi Corporation
The investment of Rs 300 crores by Mitsubishi Corporation is intended to propel the parties’ vision in relation to vehicle ownership in Passenger Cars, Commercial Vehicles and Material Handling Equipment (MHE). The business model will have the potential to achieve $2bn revenue in the next 3-5 years’ time.
“TVS Mobility, had pioneered the sales, service and distribution of vehicles market through its dealership business in India. This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem.” said Mr. R. Dinesh, Director, TVS Mobility.
He further added, “After providing integrated and digital platforms for the independent Aftermarket, the Vehicle Mobility business will provide innovative and digitally enabled solutions to our customers, be it enterprises, corporates or fleet owners and expand our partnership with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles and ‘Vehicle-as-a-Service’ (Micromobility) solutions. This partnership will work closely with other stakeholders to provide a solution for all such stakeholders”.
MC, besides its investment, will bring in its global experience and share its best practices to scale up this business model faster. Mitsubishi to initially invest Rs 300 crores in TVS Vehicle Mobility and TVS Vehicle Mobility to provide new vehicle sales, Vehicle-as-a-Service business models, operating solutions, etc.
“India has the world’s third-largest market for new automobiles with sales topping five million vehicles in 2023 and expected to grow at 6-7% in the next few years. To gain a downstream foothold in the rapidly growing Indian market, MC has been fostering its relationship with TVS Mobility group including the investment in the after-sales services provider TVS Automobile Solutions (TASL). The latest investment in the multi-brand dealer TVS VMS widens MC’s investment coverage through enhanced service capabilities even further and should propel its aim to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also vehicle-as-a-service model, and other automotive operations.” said Mr. Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation.
TVS Mobility (Demerged from T V Sundram Iyengar & Sons Private Limited), operates in the Indian Automotive Distribution and Aftermarket Industry. It has established manufacturing (components) and integrated aftermarket platform in India.
Here the deal is subject to approval by the relevant regulatory authorities.
For Further info: https://tvsmobility.in/ | https://www.mitsubishicorp.com/jp/en/
