Key Points:
- Mitsubishi Corporation plans to acquire a stake of over 30% in TVS Mobility, marking its entry into the Indian car sales market.
- The investment, estimated at 5 to 10 billion yen, is pending regulatory approval and is expected to be finalized in the summer.
- The new venture will leverage TVS Mobility’s extensive network to establish dedicated stores for each car brand.
- Mitsubishi aims to capitalize on India’s growing automotive market by offering a diverse range of Japanese cars alongside local brands.
Japanese trading giant Mitsubishi Corporation is poised to make its foray into the Indian car sales market by acquiring a stake of over 30% in TVS Mobility, a report by Nikkei Asia reveals.
The investment, estimated to be 5 to 10 billion yen ($33 million to $66 million), is pending regulatory approval and is expected to materialize this summer. After the investment, Mitsubishi plans to deploy its personnel at the car dealerships.
As part of the agreement, TVS Mobility, an established car sales firm in India, will spin off its car sales division, with Mitsubishi acquiring a significant stake in the newly formed entity. Leveraging TVS Mobility’s extensive network of approximately 150 outlets, the new venture aims to establish dedicated stores for each car brand, potentially becoming one of India’s largest independent car dealerships.
The primary focus of the dealership will initially revolve around expanding sales of Honda cars, an area already managed by TVS Mobility. Mitsubishi intends to take the lead in negotiations with Japanese automakers to diversify the lineup with more Japanese car brands and models, catering to the preferences of Indian consumers.
Moreover, the dealership will emphasize electric vehicles (EVs), aligning with India’s ambitious plans to promote EV adoption nationwide. Mitsubishi aims to introduce innovative services such as facilitating maintenance appointments and insurance purchases through a smartphone app, enhancing the overall customer experience, and driving sales growth amidst fierce competition in the Indian automotive market.
Despite India ranking third globally in new car sales, Japanese automakers, aside from Suzuki Motor, have maintained a relatively limited presence in the Indian car sales market. Mitsubishi seeks to bridge this gap by offering a wide range of Japanese cars alongside local brands, leveraging its partnership with TVS Mobility and tapping into India’s lucrative automotive sector.
