Japanese trading powerhouse Mitsubishi Corp is gearing up for a significant entry into the Indian car sales market, with plans to acquire a stake of over 30 percent in TVS Mobility, a major player in Indian car sales. The move, expected to materialize this summer, marks Mitsubishi’s strategic foray into the burgeoning Indian automotive sector, as reported by financial daily Nikkei Asia.
As part of the agreement, TVS Mobility will undergo the spin-off of its car sales business, with Mitsubishi securing a stake exceeding 30 percent in the newly formed entity, pending regulatory approvals. The anticipated investment ranges between 5 billion to 10 billion yen ($33 million to $66 million). Post the completion of the investment, Mitsubishi intends to deploy its personnel to the dealership, signaling a hands-on approach to its Indian operations.
The new venture will see the establishment of dedicated showrooms for each car brand, leveraging TVS Mobility’s existing network of 150 outlets across the country. Initially, the focus will be on amplifying the sales of Honda cars, already part of TVS’s lineup. Mitsubishi plans to engage in discussions with Japanese automakers to diversify the range of Japanese car brands and models available in the Indian market.
Electric vehicles (EVs) will take center stage in the dealership’s offerings, aligning with Mitsubishi’s vision to drive wider EV adoption in India. Additionally, the company aims to introduce innovative services, including the ability for customers to schedule maintenance appointments and purchase insurance through a smartphone app. These initiatives aim to elevate the overall customer experience and bolster sales in the competitive Indian automotive landscape.
India holds the third position globally in new car sales, trailing only China and the US. However,
