Mitsubishi ties up with TVS arm to sell Japanese cars in India

Mitsubishi Corp. is planning to buy a 32% stake in TVS Vehicle Mobility Solution Pvt. Ltd, a nationwide operator of multi-brand car dealerships, through the private placement route, the Japanese company said.

The investment in TVS Vehicle Mobility Solution widens the company’s investment coverage in distribution, retail, and after-sales services, Mitsubishi Corp said in a release.

“This investment is intended to propel Mitsubishi’s aim to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also leasing and other automotive operations by utilizing extensive TVS VMS’ customer base and digital technology,” the statement said.

The completion of these transactions is subject to approval by the relevant regulatory authorities, it added.

TVS Vehicle Mobility Solution, which has a network of 152 dealerships, is one of the leading automotive dealers in India.

The dealerships offer a wide range of products, including construction and material handling equipment alongside the distribution of commercial and passenger vehicles from leading automakers such as Honda, Renault, Ashok Leyland, and Mahindra.

India ranks third in new car sales after China and the US, but Japanese automakers have a weak presence in the country with the exception of Suzuki Motor.

Mitsubishi aims to sell Japanese cars through TVS Vehicle Mobility Solution in addition to local brands, Nikkei reported, adding that as a first priority, the company will expand sales of Honda cars, which are already being handled by TVS.

Mitsubishi will lead negotiations with other Japanese automakers and increase the number of Japanese car brands and models in the lineup, the report added.

Since 2012, Mitsubishi has been engaged in manufacturing and sales through its local arm Isuzu Motors India Pvt. Ltd.

To gain a foothold in the rapidly growing Indian automotive sector, Mitsubishi had invested in TVS Automobile Solutions (TASL), one of India’s largest independent after-sales services providers, in 2019.

TASL has a network of about 700 service centers and partnerships with 16,000 retailers of wholesale auto parts connecting through digital technology.