CHENNAI: Chennai-based auto component and after-sale distribution chain TVS Mobility has announced a joint venture with Japan-based conglomerate Mitsubishi Corporation (MC) to establish a complete vehicle service ecosystem.
MC will initially invest R300 crore with the investment intended to spur growth in vehicle ownership in Passenger Cars, Commercial Vehicles and Material Handling Equipment (MHE). The deal is subject to regulatory approval.
With this, the dealership business of TVS Mobility will change into TVS Vehicle Mobility Solution (TVS VMS) offering a complete portfolio. “TVS Mobility, had pioneered the sales, service and distribution of vehicles market through its
dealership business in India. This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem.” said R Dinesh, Director of TVS Mobility. This will focus on enterprises, corporates or fleet owners and expand our partnership with vehicle manufacturers to provide integrated solutions across vehicle sales, operating of vehicles and ‘Vehicle-as-a-Service’, he added.
TVS Mobility Group is the holding company for the businesses managed by the T S Rajam family members. It is demerged from T V Sundram Iyengar and Sons Private Limited. Group’s business has a combined annual revenue of around $3 billion including manufacturing of tyres and components, platform for parts distribution and services in the aftermarket and auto retail.
The business model will have the potential to achieve $2 billion revenue in the next 3-5 years’ time, TVS Mobility said in a statement.
Investment in TVS VMS widens MC’s investment coverage through enhanced service capabilities and covers not only after-sales services and multi-brand sales, but also vehicle-as-a-service models, said Shigeru Wakabayashi, CEO of Automotive and Mobility Group at Mitsubishi Corporation.