Mitsubishi to buy 30% of TVS Mobility for India comeback
What's the story
Mitsubishi Corporation is gearing up to return to the Indian car market by acquiring a stake of more than 30% in car dealership TVS Mobility, as reported by Nikkei Asia.
The Japanese automobile giant's investment, estimated to be between $33 million and $66 million, hinges on receiving regulatory approval.
Once approved, Mitsubishi intends to send its employees to collaborate with TVS Mobility.
Mitsubishi left India in 2016 as it was unable to flourish amid stiff competition in the market.
Deal details
Strategic partnership and focus on Japanese car brands
In line with the agreement, TVS Mobility will separate its car sales business, allowing Mitsubishi to secure more than a 30% interest in the newly formed entity.
This new company plans to create exclusive stores for each car brand, utilizing TVS Mobility's existing network of around 150 outlets.
The venture is set to become one of India's largest independent car dealerships, with Mitsubishi aiming to boost its presence by selling both Japanese and local car brands through the new company.
What's next?
Expansion of Honda sales and introduction of innovative services
Initially, the dealership will concentrate on increasing sales of Honda cars, a brand already managed by TVS Mobility.
Mitsubishi will spearhead negotiations with Japanese automakers to diversify its lineup of Japanese car brands and models.
The dealership will also offer electric vehicles (EVs), in line with Mitsubishi's belief that this will promote wider adoption of EVs in India.
Mitsubishi also plans to introduce innovative services like scheduling maintenance appointments and purchasing insurance via a smartphone app.