Presently, India is recognized as one of the leading automobile markets in the world while holding 3rd place in the new car sales segment, followed by China and USA.
Car Dealerships Playing Important Role
It is noteworthy here that the area of Car dealerships plays a crucial role in this growth.
So, having a sizable presence in this segment will definitely help in profitability.
Considering the same, TVS Mobility and Mitsubishi Corporation have started creating their presence in this segment.
When it comes to TVS Mobility, it is a leading player in the automotive distribution and aftermarket industry.
Earlier it had demerged from T V Sundram Iyengar & Sons Private Limited.
The firm has expertise in manufacturing a plethora of aftermarket components for automobiles.
Presently, the firm is a major automotive dealer operating more than 150 car dealerships in India.
The automobile firm operates car dealerships for Honda, Toyota, Mercedes-Benz, Mahindra, Volkswagen, Ford among others.
TVS Mobility & Mitsubishi Corporation Joint Venture
In this latest development, the Japanese conglomerate, Mitsubishi Corporation, has announced a joint venture with TVS Mobility.
Under this collaboration, Mitsubishi is initially investing Rs. 300 Crores at the same time both companies are pledging to support this venture’s growth.
Under this joint venture with Mitsubishi Corporation, TVS Mobility’s dealership business will spin off to form TVS Vehicle Mobility Solution.
In this development, Mitsubishi Corporation appears to be acquiring around 30% stakes in TVS Mobility.
With this venture, they aim to establish a comprehensive vehicle mobility ecosystem in India.
Basically, they are planning to redefine vehicle ownership experience for Indian car buyers.
As per their claims, there is a potential to earn USD 2 billion in revenue within the next three to five years of time span.
A Range Of Solutions For Entire Vehicle Mobility Ecosystem
This deal is under the approval stage by relevant authorities within the Indian Government, presently.
Now coming to the TVS Vehicle Mobility Solution, it will cater to passenger vehicles, commercial vehicles and even material handling equipment and provide to enterprises, corporations and fleet owners.
Their business model is expected to provide solutions to car manufacturers for operating of vehicles, vehicle sales and vehicle-as-a-service.
“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.
Adding, “ 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”.
