Mitsubishi to buy over 30 percent stake in TVS Mobility with hopes of expanding sales of Japanese carmakers in India.
Mitsubishi Corporation, the Japanese trading house, is set to acquire a stake of over 30 percent in TVS Mobility, which operates about 150 car dealerships in India, reports Nikkei Asia. One of the first priorities of this investment will be to expand sales of Honda cars in the country – the Japanese car brand is already one of TVS Mobility’s clients.
- Mitsubishi to invest about Rs 276 crore to Rs 553 crore
- New venture looks to expand Japanese automakers’ reach
- New dealerships to have EVs as well
The Yen 5 billion to 10 billion (Rs 276 crore to Rs 553 crore) investment is pending regulatory approval, after which Mitsubishi will deploy its personnel at the dealerships. Under the agreement, TVS will spin off its car sales division, with Mitsubishi acquiring a stake in this new venture.
Aim to increase sales for Honda, Japanese carmakers
Another aim of the Japanese trading company with the newly formed entity is to lead negotiations with Japanese automakers (other than Honda) to “diversify the lineup with more Japanese car brands and models” and also establish dedicated stores for each car brand. This new company could become one of the largest independent car dealerships in India.
The dealerships will also reportedly feature electric vehicles (EVs) – Honda is set to bring the Elevate-based EV to India by 2026. Mitsubishi also has plans to bring in services that facilitate maintenance appointments and insurance purchases through a smartphone app. These initiatives are aimed at boosting sales in the extremely competitive Indian automotive market.
It is important to note that at the moment, Suzuki Motor is the only Japanese brand that has a major presence in India through Maruti Suzuki; our country currently ranks third globally in new car sales. Mitsubishi hopes to expand the sales and reach of Japanese car brands in India through this venture. TVS Mobility’s current car clients also include Toyota, Volkswagen, Mercedes-Benz, Mahindra and Ford.
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