Mitsubishi and TVS Mobility Announce Major Partnership in Indian Automotive Retail Sector

Mitsubishi Corporation, a prominent Japanese automobile manufacturer, has announced its intention to re-enter the Indian market in partnership with TVS Mobility to explore opportunities in the automotive retail sector. The Japanese company plans to invest ₹300 crore in TVS Mobility, and subject to approval from the relevant regulatory authorities, the Indian brand’s dealership business will be rebranded as TVS Vehicle Mobility Solution (TVS VMS).

According to Mitsubishi Corporation, this strategic partnership has the potential to generate an estimated $2 billion (approximately ₹16,602 crore) in revenue over the next five years. With a substantial investment, TVS Mobility aims to offer a wide range of services, including new vehicle sales, vehicle-as-a-service business models, and innovative operating solutions.

R. Dinesh, Director of TVS Mobility, expressed his enthusiasm about the collaboration, emphasizing its significance in providing integrated and digital platforms for the independent aftermarket. He also highlighted the innovative and digitally enabled solutions that the Vehicle Mobility business will offer to a diversified customer base, spanning enterprises, corporates, and fleet owners.

Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation, discussed India’s status as the world’s third-largest market for new automobiles, with an impressive sales record of over five million vehicles in 2023. He also highlighted the projected growth rate of 6-7 per cent in the coming years. Wakabayashi emphasized the importance of the substantial investment in TVS VMS, aligning with Mitsubishi Corporation’s goal to develop comprehensive mobility solutions encompassing after-sales services, multi-brand sales, vehicle-as-a-service models, and other automotive operations.

The partnership between Mitsubishi Corporation and TVS Mobility marks a significant development in the Indian automotive retail sector, with potential for future growth and innovation. As the industry continues to evolve, collaborative ventures such as this are poised to shape the next chapter of mobility solutions in the country.

In other news, Maharashtra has emerged as the leading state in terms of passenger vehicle sales in the third quarter of 2024, as reported by SIAM. Additionally, Hyundai celebrated the sale of its 1 millionth Creta in India, while Hero Mavrick 440 garnered attention with its image gallery release. Yokohama introduced new Geolander tyres, and Volkswagen is reportedly seeking a partner to boost its electric vehicle production in India. These developments highlight the dynamic nature of the Indian automotive market, as industry players continue to drive innovation and growth.

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