Japanese trading house Mitsubishi Corporation is set to acquire over 30 percent stake in TVS Mobility, according to a report by Nikkei Asia. TVS Mobility operates about 150 car dealerships in India and one of the first priorities of this investment will be to expand sales of Honda cars in the country.
TVS Mobility is an automobile corporate dealer and is claimed to be India’s largest distributor, specialising in developing and supplying automobile solutions.
- Mitsubishi to invest about Rs 276 crore to Rs 553 crore
- New venture looks to expand Japanese automakers’ reach
- New dealerships to have EVs as well
The Yen 5 billion-10 billion (Rs 276 crore to Rs 553 crore) investment is pending regulatory approval, after which Mitsubishi will deploy its personnel at the dealerships. Under the agreement, TVS will spin off its car sales division, with Mitsubishi acquiring a stake in this new venture.
Aim to increase sales for Honda, Japanese carmakers
The trading company aims to lead negotiations with Japanese automakers (other than Honda) to “diversify the line-up with more Japanese car brands and models”, and also establish dedicated stores for each car brand. This new company could become one of the largest independent car dealerships in India.
The dealerships will also reportedly feature electric vehicles (EVs) – Honda is set to bring the Elevate-based EV to India by 2026. Mitsubishi also has plans to bring in services that facilitate maintenance appointments and insurance purchases through a smartphone app. These initiatives are aimed at boosting sales in the extremely competitive Indian automotive market.
It is important to note that at the moment, Suzuki Motor is the only Japanese brand that has a major presence in India through Maruti Suzuki; our country currently ranks third globally in new car sales. TVS Mobility’s current car clients also include Toyota, Volkswagen, Mercedes-Benz, Mahindra and Ford.
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