Mitsubishi and TVS Mobility come together for ₹300 crore joint venture in India

Mitsubishi Corporation has announced an initial investment of ₹300 crore in a collaboration with TVS Mobility to support the growth of a joint venture. The investment is aimed at propelling the vision of both parties in relation to vehicle ownership in passenger cars, commercial vehicles, and material handling equipment.

The joint venture is expected to achieve a revenue of USD 2 billion within the next 3-5 years. As a result of this collaboration, TVS Mobility’s dealership business will transform into TVS Vehicle Mobility Solution (TVS VMS), offering a complete portfolio of services to its customers. TVS Mobility Director R Dinesh stated that the collaboration with Mitsubishi Corporation will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem.

The partnership will also expand collaboration with vehicle manufacturers to provide integrated solutions across vehicle sales, operations, and Vehicle-as-a-Service solutions. According to Mitsubishi Corporation CEO of Automotive and Mobility Group Shigeru Wakabayashi, the investment in TVS VMS widens the company’s investment coverage and aims to develop comprehensive mobility solutions, including after-sales services, multi-brand sales, and vehicle-as-a-service models.

The collaboration between Mitsubishi Corporation and TVS Mobility is part of Mitsubishi Corporation’s efforts to gain a downstream foothold in the rapidly growing Indian market. This includes previous investments in the after-sales services provider TVS Automobile Solutions (TASL). The latest investment in TVS VMS is expected to further enhance the company’s service capabilities and develop comprehensive mobility solutions.

This collaboration marks a significant development in the vehicle mobility sector, as both parties aim to provide digitally-enabled solutions to customers and expand their operations in the Indian market.

Published on 19th February 2024, 16:55 PM IST.