Mitsubishi, a renowned Japanese automotive brand, is gearing up to make a significant comeback in India’s diverse car market. After its hiatus since the onset of BS6 emission norms, Mitsubishi has announced its return in 2024 with a strategic investment in TVS Mobility, a key player in India’s dealership landscape.
Upon finalisation of the investment, Mitsubishi plans to integrate its personnel into TVS Mobility’s dealership operations. This collaborative effort signifies a concerted approach to capitalising on the burgeoning Indian market. A new entity will be formed, dedicated to showcasing a diverse range of car brands through specialised showrooms. Reports suggest that Mitsubishi’s investment amounts to tens of millions of US dollars, subject to regulatory approvals.
Mitsubishi’s Investment in TVS Mobility
The agreement between Mitsubishi and TVS Mobility involves Mitsubishi acquiring a substantial stake, exceeding 30 percent, in TVS Mobility’s car sales division. This strategic investment, estimated to be between 5 billion and 10 billion yen ($33 million and $66 million), underscores Mitsubishi’s commitment to establishing a strong foothold in India’s automotive sector. In a parallel development, Mitsubishi has partnered with TVS VMS, one of India’s largest multi-brand dealers. This collaboration seeks to advance comprehensive mobility solutions for Japanese automakers in India, encompassing after-sales services, multi-brand sales, leasing, and other automotive ventures. The investment aims to leverage TVS VMS’s broad customer base and digital technology to drive Mitsubishi’s strategic objectives in India.
Focus on Electric Vehicles and a Better Customer Experience.
Aligned with the global automotive industry’s shift towards sustainability, the envisioned partnership is poised to prioritize electric vehicles (EVs). Mitsubishi aims to lead the promotion of EV adoption in India, aligning with the country’s push towards cleaner mobility solutions. In addition to promoting sustainable transportation, the new venture aims to elevate the customer experience by introducing innovative services. These include smartphone-enabled maintenance scheduling and streamlined insurance purchases, enhancing convenience and satisfaction for consumers.
Potential Return of Mitsubishi Cars to India
While Mitsubishi is making a comeback in India’s automotive space, there are no immediate plans to reintroduce Mitsubishi’s own lineup. However, there is a focus on EVs to the market, reflecting the industry’s trend towards sustainable transportation solutions. The partnership with TVS VMS opens up opportunities for sub-brands of Japanese car manufacturers to enter the Indian market. Mitsubishi is expected to spearhead negotiations to increase the presence of Japanese car brands and models in India, potentially including names like Mazda and Infiniti.
Looking ahead, Mitsubishi intends to engage in discussions with other Japanese automakers to diversify the range of car brands and models available in India. This initiative aims to offer Indian consumers a wider selection of vehicles, catering to diverse preferences and needs.
Conclusion
Mitsubishi’s return to India through strategic investments in TVS Mobility and collaboration with TVS VMS heralds a new era in the country’s automotive industry. With a focus on electric vehicles and enhanced customer experience, Mitsubishi aims to carve a niche in India’s rapidly evolving automotive landscape. By partnering with established players in the Indian market, Mitsubishi is positioning itself to capture a larger share of the growing demand for electric vehicles and innovative mobility solutions. This tactical move, which also strengthens the company’s presence in India, demonstrates Mitsubishi’s dedication to sustainable and customer-centric practises
