Japanese conglomerate Mitsubishi has collaborated with TVS Mobility to establish a comprehensive vehicle mobility ecosystem in India, marking an initial investment of Rs 300 crore in the venture for 32% stake in the company.
This financial commitment aims to advance their shared vision for vehicle ownership in Passenger Cars, Commercial Vehicles, and Material Handling Equipment (MHE).
The anticipated outcome is a business model with the potential to generate $2 billion in revenue within the next 3-5 years, according to the accompanying press release.
Mitsubishi intends to contribute its best practices to expedite the expansion of this business model. As a result, the dealership operations of TVS Mobility will undergo a metamorphosis, evolving into the entity known as TVS Vehicle Mobility Solution (TVS VMS).
R. Dinesh, Director of TVS Mobility, expressed that the collaboration with Mitsubishi Corporation (MC) allows TVS to offer a diverse range of solutions within the entire vehicle mobility ecosystem. Notably, TVS Mobility has been a pioneer in the sales, service, and distribution of vehicles in India through its dealership business.
Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation, highlighted MC’s strategic efforts to establish a stronger presence in the burgeoning Indian market. This includes fostering relationships with TVS Mobility, such as the investment in after-sales services provider TVS Automobile Solutions (TASL).
The latest financial commitment in the multi-brand dealership, TVS VMS, is perceived as a noteworthy step to expand Mitsubishi Corporation’s investment scope and improve service capabilities.
This aligns with their objective of creating all-encompassing mobility solutions, covering after-sales services, multi-brand sales, vehicle-as-a-service models, and other facets of automotive operations.
