Mitsubishi to partner with TVS Mobility

By :  Sachin Gupta 

Published : 19 February 2024

Mitsubishi to partner with TVS Mobility

Mitsubishi Corporation plans to join the Indian auto industry by purchasing a majority interest in TVS Mobility. The estimated value of Mitsubishi's investment, which may be anywhere from 5 billion to 10 billion yen ($33 million to $66 million), depends on gaining regulatory permission. Following clearance, Mitsubishi intends to deploy workers to work with the business.

How this strategic partnership will work

Mitsubishi and TVS Mobility, a major participant in the Indian auto industry, will work together. TVS Mobility will spin off its auto sales division following the deal, and Mitsubishi will own a majority stake of over 30 percent in the new company. By utilising TVS Mobility's current network of over 150 locations, the company has the potential to grow into one of India's biggest independent vehicle dealerships. 

Mitsubishi's plan for the deal

Mitsubishi wants to increase its market share by using the newly established firm to offer both local and Japanese auto brands. In order to broaden the selection of Japanese automobile brands and models, Mitsubishi will take the lead in talks with Japanese automakers. In keeping with Mitsubishi's expectation that this will encourage EV adoption across India, the dealership will also sell electric cars.

Additionally, Mitsubishi intends to roll out cutting-edge services including an app for smartphones that will let users book maintenance appointments and buy insurance. It is expected that these activities would help expand sales, particularly as the Indian market becomes more competitive.