TVS Mobility has announced a joint venture with the Japanese conglomerate Mitsubishi Corporation (MC), a globally integrated business enterprise with a network of around 1,700 group companies, to establish a comprehensive vehicle mobility ecosystem in India. Mitsubishi Corporation will initially invest Rs 300 crores with both parties.
This investment 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 $2 billion revenue in the next 3-5 years.
TVS Mobility is demerged from TV Sundram Iyengar & Sons and operates in the Indian Automotive Distribution and Aftermarket Industry. It has established manufacturing (components), and integrated aftermarket platform in India. With this JV, the dealership business of TVS Mobility will transform into TVS Vehicle Mobility Solution (TVS VMS) – offering a complete portfolio of services to its customers.
Speaking on the joint venture, R Dinesh, Director, TVS Mobility said, “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”.
Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation added that, besides its investment, Mitsubishi will bring in its global experience and share its best practices to scale up this business model faster, “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.”
