Mitsubishi to acquire 30% stakes of TVS: According to a Nikkei Asia report, the Japanese behemoth Mitsubishi Corporation plans to join the Indian auto sales market this summer by purchasing a stake of more than 30 percent in auto dealership TVS Mobility.
As per the Nikkei Asia report, TVS Mobility is set to separate its automobile sales division, with Mitsubishi holding a majority stake of more than thirty percent in the resulting company. The estimated 5–10 billion yen ($33–66 million) investment is contingent upon receiving regulatory approvals. The report also stated that Mitsubishi intends to send staff members to the dealership following the completion of the investment.
The new business will use TVS Mobility’s 150 current locations to construct showrooms specifically for each auto brand. According to the report, the initial focus will be on increasing sales of Honda vehicles, which are currently part of TVS’s lineup. Mitsubishi is leading the charge in talks with Japanese automakers to expand the selection of Japanese car brands and models available.
Mitsubishi intends to encourage the broader adoption of electric vehicles (EVs) in India, so the dealership will include EVs in its lineup. The company also intends to launch new services to improve customer experience and increase sales in the cutthroat Indian market, like letting users book maintenance appointments and buy insurance via a smartphone app.
Focus on Japanese Car Brands, Including EVs
Japan’s automakers have not been very active in India, the world’s third-biggest market for new car sales after the US and China, with Suzuki Motor being an exception. As per the report, Mitsubishi intends to augment its market share by vending both domestic and Japanese automobile brands via the recently established enterprise.
Expanding sales of Honda vehicles—a brand currently managed by TVS Mobility—will be the dealership’s primary goal. Mitsubishi will take the lead in talks with Japanese automakers in an effort to increase the variety of Japanese car models and brands available. To further support Mitsubishi’s belief that this will lead to a wider adoption of EVs in India, the dealership will also sell electric cars.
