TVS Mobility (TVSM) and Japanese conglomerate Mitsubishi Corporation have formed a joint venture to establish a vehicle mobility ecosystem in India. The latter will make an initial investment of ₹300 crore for a 32% stake.
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“We have four business verticals operating under TVSM. The first vertical of multi-brand dealership business is hived off and called TVS Vehicle Mobility Solution (TVS VMS). It would offer a complete portfolio of services to its customers,” said TVSM Pvt. Ltd., Director R. Dinesh at a press meet.
Demerged from T.V. Sundram Iyengar & Sons Pvt. Ltd., TVSM is a leading player in automotive distribution and aftermarket industry. It will use MC’s seed capital to develop comprehensive mobility solutions covering new sales, after-sales services, leasing and other automotive operations.
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The business model has the potential to achieve ₹15,000 crore revenue in three years from the current ₹5,000 crore, he said.
He downplayed the possibility of an IPO, saying any fund crunch would be jointly borne by both parties.
“India is the world’s third-largest market for new automobiles with sales topping five million in 2023 and expected to grow at 6%-7% in the next few years,” said Mitsubishi Corporation Automotive and Mobility Group CEO, Shigeru Wakabayashi. “To gain a downstream foothold in the rapidly growing Indian market, MC has been fostering its relationship with TVS Mobility group,” he added.
TVSM Group President & CEO Srinivasa Raghavan said the division sells annually half a million vehicles. The new division would cater to B2B segment for enterprises, corporate or fleet owners be it construction equipment, mining, or, electric buses.