TVS Mobility will spin off its car sales division and Mitsubishi will acquire a stake of over 30 per cent in the newly formed entity
Mitsubishi Corporate will return to the domestic car sales market following the acquisition of more than 30 per cent stake in TVS Mobility, which is a global automobile corporate dealer and India’s largest distributor specialised in developing and supplying automobile solutions. It already operates dealerships for Honda, Renault, Mahindra trucks and Ashok Leyland.
As part of the agreement, TVS Mobility, a prominent car sales company in India, will separate its car sales division, and Mitsubishi will acquire a stake of over 30 per cent in the newly formed entity. India is currently the third largest automotive market in the world, following China and the United States, and Mitsubishi wants to make its presence felt again.
Mitsubishi intends to retail Japanese car models through the new company, along with locally available brands. The company’s investment, pending regulatory approval, is reported to fall within the range of 5 billion to 10 billion yen (USD 33 million to USD 66 million). Following the completion of the investment, Mitsubishi plans to deploy its employees to the dealership.
According to a report that emerged on Nikkei Asia, the new company will establish dedicated outlets for each car brand it represents. The primary focus will be to expand the sales of Honda cars, leveraging the existing infrastructure and expertise of TVS in handling them. Mitsubishi will lead negotiations with Japanese automakers in an aim to expand the lineup.
It is possible by introducing more Japanese car brands and models under the new dealership company. With TVS Mobility presently operating around 150 outlets, the new entity is focussed on becoming one of the largest independent car dealerships in India. The outlets will offer a range of vehicles, including electric ones as Mitsubishi sees this as a catalyst for promoting wider adoption of electric vehicles locally.
The report further noted that Mitsubishi has plans to roll out new services including features like scheduling maintenance appointments and purchasing insurance via a smartphone application. The objective of these innovations is to boost sales, especially in anticipation of heightened competition within the Indian market.