TVS Mobility, a leading player in the Indian automotive distribution and aftermarket industry, has announced a joint venture with Mitsubishi Corporation, a Japanese conglomerate, to establish a comprehensive vehicle mobility ecosystem in India. The new entity, TVS Vehicle Mobility Solution (TVS VMS), will offer a complete portfolio of services to its customers, including new vehicle sales, vehicle-as-a-service business models, and operating solutions.
Mitsubishi Corporation’s Investment in TVS Mobility Mitsubishi JV
Mitsubishi Corporation will initially invest INR 300 crore in the joint venture, with both parties committed to supporting its growth. The investment is intended to propel their vision in relation to vehicle ownership in passenger cars, commercial vehicles and material handling equipment (MHE). The business model will have the potential to achieve USD 2 billion revenue in the next 3-5 years, according to the companies. Mitsubishi Corporation is a globally integrated business enterprise with a network of around 1,700 group companies. It will bring in its global experience and share its best practices to scale up this business model faster.
TVS VMS’s Services under TVS Mobility Mitsubishi JV
The joint venture will transform the dealership business of TVS Mobility into TVS VMS, which will be India’s largest independent car dealer. TVS Mobility currently operates more than 150 car dealerships in India for various brands such as Honda, Toyota, Mercedes-Benz, Mahindra, Volkswagen and Ford. With this joint venture, TVS VMS will cater to enterprises, corporates and fleet owners and provide them with innovative and digitally enabled solutions. The joint venture will also work closely with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles and vehicle-as-a-service (micromobility) solutions. Some of the services that TVS VMS will offer are:
- New vehicle sales: TVS VMS will provide a wide range of options for customers to choose from various brands and models of vehicles. It will also offer financing, insurance and warranty services to facilitate the purchase process.
- Vehicle-as-a-service: TVS VMS will enable customers to access vehicles on demand without owning them. It will offer flexible and affordable subscription plans for different types of vehicles and usage patterns. It will also take care of the maintenance and servicing of the vehicles.
- Operating solutions: TVS VMS will help customers optimize their vehicle operations and reduce their total cost of ownership. It will offer fleet management, driver management, telematics, analytics and other value-added services to enhance the efficiency and safety of the vehicles.
The Deal’s Impact
The deal is subject to the approval by the relevant regulatory authorities. The joint venture is expected to redefine the vehicle ownership experience for Indian customers and herald a transformation in the Indian automotive landscape. It will create new opportunities for growth and innovation in the vehicle mobility sector and contribute to the development of a sustainable and inclusive mobility ecosystem in India.
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