Mitsubishi Corporation has announced a significant partnership with India’s TVS Mobility to introduce extensive vehicle mobility solutions in the Indian market. Under this collaboration, Mitsubishi will invest an initial amount of Rs 300 crore (approximately $300 million) to establish a 50-50 joint venture named TVS Vehicle Mobility Solutions alongside its Indian counterpart. The newly formed company aims to create a comprehensive vehicle mobility ecosystem, offering services such as new vehicle sales, vehicle-as-a-service models, and fleet operating solutions.
The joint venture’s primary goal is to reshape vehicle ownership and usage paradigms, targeting a revenue milestone of $2 billion within the next 3-5 years. TVS Mobility, previously known as TV Sundram Iyengar & Sons, brings its well-established presence in India’s automotive distribution and aftermarket to the partnership. The collaboration will see TVS Mobility’s dealership business being integrated into the TVS Vehicle Mobility Solutions venture.
According to R Dinesh, Director of TVS Mobility, the joint venture will focus on delivering innovative and digital solutions tailored for enterprise customers, corporations, fleet owners, and individual consumers seeking vehicle-as-a-service options like micromobility.
For Mitsubishi Corporation, this joint venture represents a significant expansion into India’s rapidly growing auto market. The company’s existing partnerships with TVS Mobility, including previous investments in after-sales service provider TVS Automotive Solutions, underscore its commitment to the region.
Shigeru Wakabayashi, CEO of Mitsubishi’s Automotive and Mobility Group, emphasized that the company will leverage its global experience and best practices to expedite the scaling up of the new business model.
India currently ranks as the world’s third-largest market for new automobile sales. While the market is forecasted to grow at a rate of 6-7% annually, consumer preferences are shifting towards usership models from traditional ownership. The joint venture aims to capitalize on these evolving trends with its array of mobility solutions.
Mitsubishi Corporation’s strategic collaboration reflects its anticipation of the changing dynamics in India’s high-growth auto market. The success of the joint venture hinges on the partners’ ability to discern evolving consumer demands and deliver customized mobility solutions tailored to the market.