TVS Mobility joins Mitsubishi for ₹300 crore joint venture in India

TVS Mobility on Monday said it has formed a joint venture with the Japanese conglomerate Mitsubishi Corporation to establish a comprehensive vehicle mobility ecosystem in India.

As part of the collaboration, Mitsubishi Corporation will initially invest ₹300 crore with both parties committed to support the growth of the joint venture.

This investment is intended to propel both the parties' vision in relation to vehicle ownership in passenger cars, commercial vehicles and material handling equipment (MHE), TVS Mobility said in a statement.

The business model will have the potential to achieve USD 2 billion revenue in the next 3-5 years' time, it added.

With this, the dealership business of TVS Mobility will transform into TVS Vehicle Mobility Solution (TVS VMS) offering a complete portfolio of services to its customers.

"TVS Mobility, had pioneered the sales, service and distribution of vehicles market through its dealership business in India. This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem," TVS Mobility Director R Dinesh said.

After providing integrated and digital platforms for the independent aftermarket, the vehicle mobility business will provide digitally-enabled solutions to customers, be it enterprises, corporates or fleet owners, he added.

The partners would also expand partnership with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles and Vehicle-as-a-Service solutions, Dinesh said.

To gain a downstream foothold in the rapidly growing Indian market, Mitsubishi Corporation has been fostering its relationship with TVS Mobility group including the investment in the after-sales services provider TVS Automobile Solutions (TASL), Mitsubishi Corporation CEO of Automotive and Mobility Group Shigeru Wakabayashi said.

"The latest investment in the multi-brand dealer TVS VMS widens company's investment coverage through enhanced service capabilities even further and should propel its aim to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also vehicle-as-a-service model, and other automotive operations," he added.