Mitsubishi Company (MC) is happy to announce that it has agreed to subscribe shares (approx. 32%) in TVS Automobile Mobility Answer Non-public Restricted (TVS VMS) by way of the non-public placement. The completion of those transactions is topic to approval by the related regulatory authorities.

To realize a downstream foothold within the quickly rising Indian automotive sector, MC had invested in one in all India`s largest unbiased after-sales companies suppliers, i.e., TVS Vehicle Options (TASL), in 2019. TASL has a community of roughly 700 service facilities and partnerships with 16,000 retailers of wholesale auto components connecting by way of digital expertise.

This newest funding in TVS VMS, one of many largest multi-brand sellers in India, widens MC’s funding protection by way of enhanced downstream service capabilities. This funding is meant to propel MC’s purpose to develop complete mobility options spanning not solely after-sales companies and multi-brand gross sales, but additionally leasing and different automotive operations by using intensive TVS VMS’ buyer base and digital expertise.

TVSM Overview

TVSM is one in all TVS Group’s most recognizable firms, with a proud historical past in car gross sales relationship again to 1951. In December 2023, TVSM established a brand new firm known as TVS VMS the place these automotive operations will likely be spun off inside 2024. Having inherited TVSM’s nationwide community constructed over time, TVS VMS is without doubt one of the main automotive sellers in India. Its 152 dealerships carry building and materials dealing with tools, along with distribution of business and passenger automobiles produced by variety of automakers, together with Honda, Renault, Ashok Leyland and Mahindra.

TVSM has a longtime native buyer base, and its dealerships have offered multiple million automobiles since 1951 and carried out roughly 100,000 common upkeep companies on an annual foundation. Lately, TVSM started specializing in buyer comfort with the utilization of digital expertise and developed TVSOne, an app designed to supply one-stop companies for insurance coverage, finance, upkeep and different automotive and tools wants.

Indian Automotive Market

India boasts the world’s third-largest marketplace for new vehicles, with gross sales topping 5 million automobiles in 2023. Whereas the market is predicted to develop at 6-7%, a current pattern in India has been a transition from automobile possession to usership, notably within the company phase. In India, the place electrical energy is inexpensive than petrol, extra drivers are shifting from inside combustion engine automobiles (ICE automobiles) to electrical automobiles (EVs) in an effort to benefit from the complete value of possession benefit that the latter gives. As such, India’s near-term market progress will seemingly replicate a mixture of possession, usership, ICE automobiles and EVs. Attributable to these market circumstances, it’s anticipated that buyer wants for complete mobility options that not solely embody the gross sales of automobiles but additionally cowl after-sales service, leasing, insurance coverage, and different companies would rise sooner or later.

Transition & Path of MC’s Automotive Enterprise

MC has been engaged in abroad automotive companies because the Fifties. Primarily focusing on Thailand, Indonesia and different ASEAN markets, its operations cowl the whole lot from car manufacturing to gross sales, gross sales financing and after gross sales. Within the fast-growing Indian market, MC obtained concerned in manufacturing and gross sales since 2012 (by way of Isuzu Motors India Non-public Restricted), and can additional strengthen its operations along with TVSM led by Mr. Dinesh, presently serving as President of Confederation of Indian Business (CII), although enlargement of a buyer base and the applying of digital expertise.

SOURCE: Mitsubishi Company