As per the agreement, TVS Mobility, a prominent player in car sales, will separate its car sales division, with Mitsubishi acquiring a stake exceeding 30% in the newly formed entity. This summer, Japanese trading giant Mitsubishi Corp will step into India’s car sales arena, securing a stake surpassing 30% in TVS Mobility, a significant Indian car sales entity operating numerous dealerships nationwide, as reported by financial publication Nikkei Asia.
As per the report from Nikkei Asia, TVS Mobility is set to separate its car sales division under the agreement, with Mitsubishi acquiring a stake exceeding 30% in the newly established entity. The investment, estimated to range between 5 billion to 10 billion yen ($33 million to $66 million), awaits regulatory approvals. Following the finalization of the investment, Mitsubishi intends to deploy its personnel to the dealerships, as highlighted in the report.
The forthcoming company will establish dedicated showrooms for each car brand, leveraging TVS Mobility’s existing network of 150 outlets. Initially, the focus will be on bolstering sales of Honda vehicles, which are already part of TVS’s offerings. Mitsubishi aims to lead discussions with Japanese automakers to expand the array of Japanese car brands and models available.
As part of its offerings, the dealership will include electric vehicles (EVs), aligning with Mitsubishi’s goal to encourage broader EV adoption in India. Additionally, the company intends to roll out new services, such as facilitating maintenance appointments and insurance purchases via a smartphone app, aiming to elevate customer satisfaction and drive sales amidst the fiercely competitive Indian market.
