Mitsubishi set to enter Indian car market with over 30% stake in TVS mobility
Under this arrangement, TVS Mobility will separate its car sales business, with Mitsubishi taking a stake of over 30% in the newly formed entity.
After an absence of nearly a decade from the Indian car sales market, Mitsubishi is gearing up to make its return this year by acquiring a 30% stake in TVS Mobility, which operates dealerships in the country.
Under this arrangement, TVS Mobility will separate its car sales business, with Mitsubishi taking a stake of over 30% in the newly formed entity. According to Nikkei Asia, the investment is estimated to range between 5 billion to 10 billion yen ($33 million to $66 million). However, this move is contingent upon regulatory approvals. Nevertheless, Mitsubishi intends to deploy its staff to the dealership once the investment is finalized.
The forthcoming company, resulting from this partnership, will establish separate showrooms for each car brand and utilize TVS Mobility’s existing outlets. Initially, the focus will be on bolstering sales of Honda cars, already part of the TVS lineup, as reported. Mitsubishi also aims to engage in discussions with Japanese automakers to broaden the range of car brands and models offered in India.
Moreover, the new company plans to incorporate electric vehicles (EVs) into its product lineup as part of Mitsubishi’s efforts to promote EV adoption in India. Additionally, the company intends to introduce new services, such as enabling customers to schedule maintenance appointments and purchase insurance via a smartphone app.
The dealership’s primary objective will be to expand the sales of Honda cars, an area currently managed by TVS Mobility, while Mitsubishi will take the lead in negotiating with Japanese automakers to diversify the lineup with more Japanese car brands and models.
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