Mitsubishi to enter Indian car market with over 30% stake in TVS Mobility

Japanese trading giant Mitsubishi Corporation is set to venture into the Indian car sales business this summer by acquiring a stake of more than 30 per cent in TVS Mobility, which operates car dealerships nationwide, according to a report by Nikkei Asia.

Pending regulatory approval, Mitsubishi's investment is estimated to range from 5 to 10 billion yen ($33 million to $66 million). Upon completion of the investment, Mitsubishi will deploy its personnel at the dealerships.

Under the agreement, TVS Mobility, a car sales firm in India, will spin off its car sales division, with Mitsubishi acquiring a stake of over 30 per cent in the newly formed entity. Leveraging TVS Mobility's existing network of approximately 150 outlets, the new venture will also establish dedicated stores for each car brand. Under the agreement, this new company could become one of India's largest independent car dealerships.

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The primary focus of the dealership will be to expand sales of Honda cars, an area already managed by TVS Mobility. Mitsubishi will lead negotiations with Japanese automakers to diversify the lineup with more Japanese car brands and models.

Notably, the dealership will feature electric vehicles (EVs), aligning with India's plans to promote EV adoption in the country.

In addition to vehicle sales, Mitsubishi plans to introduce innovative services such as facilitating maintenance appointments and insurance purchases through a smartphone app. These initiatives are aimed at boosting sales amidst intensifying competition in the Indian automotive market.

Despite India ranking third globally in new car sales, behind China and the US, Japanese automakers, with the exception of Suzuki Motor, have maintained a limited presence in the market. Through its new venture, Mitsubishi aims to bridge this gap by offering Japanese cars alongside local brands.