Mitsubishi Takes 30% Stake in TVS Mobility Spinoff

Mitsubishi, the Japanese automaker, is set to enter the Indian car sales market this summer with a 30 percent stake in TVS Mobility, a subsidiary of TVS Group that operates car dealerships in the country. This is Mitsubishi’s first venture into the Indian car market, which is the world’s third-largest after China and the US, with a projected revenue of US$22.6 billion in 2024.

TVS Mobility will spin off its car sales business, creating a new entity in which Mitsubishi will hold a stake of over 30 percent. The investment is expected to be between 5 billion to 10 billion yen ($33 million to $66 million), subject to regulatory approvals. Mitsubishi plans to send its employees to the dealership as soon as the investment is finalized.

The new company will leverage TVS Mobility’s existing network of around 150 outlets, which currently sell Honda, Volkswagen and Skoda cars. The venture is poised to become one of the largest independent car dealerships in India, offering a range of car brands and models from Japanese and other automakers. The new company will also have dedicated showrooms for each car brand.

Mitsubishi aims to increase the sales of Honda cars, which are already a part of the TVS lineup, as well as promote its own brand and other Japanese brands in India. Mitsubishi sold approximately 11,684 cars in India in 2023, making it one of the smallest players in the market. The company hopes to boost its market share by partnering with TVS Mobility, which sold 232,570 cars in the same year.

The new company will also offer electric vehicles (EVs) as part of its lineup, as Mitsubishi seeks to tap into the growing demand for eco-friendly cars in India. The Indian EV market is expected to grow at a CAGR of 44% from 2020 to 2027, driven by government policies, environmental awareness and cost-effectiveness. Mitsubishi has a strong portfolio of EVs, such as the Outlander PHEV and the i-MiEV, which it plans to introduce in India.

The company will also provide new services such as enabling customers to schedule maintenance appointments and purchase insurance through a smartphone app. The company will leverage digital technologies and data analytics to enhance customer experience and loyalty.

Mitsubishi’s entry into the Indian car market is seen as a strategic move to expand its presence in emerging markets, where it has been lagging behind its rivals such as Toyota and Suzuki. Mitsubishi hopes to capitalize on the growth potential of India, which is expected to overtake Japan as the world’s second-largest car market by 2030.

Recent Blog : Sony and Prime Video Introduce Stream in India