Japanese trading company Mitsubishi Corp is gearing up to venture into the Indian car sales market this summer by acquiring a stake of over 30% in TVS Mobility, a prominent car sales entity in India, as reported by financial daily Nikkei Asia.
The arrangement involves TVS Mobility segregating its car sales business, with Mitsubishi becoming a shareholder of more than 30% in the new entity. This strategic move, anticipated to amount to 5 billion to 10 billion yen ($33 million to $66 million), is contingent upon regulatory approvals and includes plans for Mitsubishi to deploy its personnel to the dealership following the completion of the investment.
The newly formed company aims to establish dedicated showrooms for various car brands, utilizing TVS Mobility's existing network of 150 outlets. The initial focus will be on enhancing the sales of Honda cars, already part of TVS's lineup, with Mitsubishi leading discussions with Japanese automakers to broaden the offering of Japanese car brands and models. Notably, the collaboration will extend to the inclusion of electric vehicles (EVs) in the dealership's lineup, aligning with Mitsubishi's goal to promote widespread EV adoption in India.
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In addition to vehicle sales, Mitsubishi envisions introducing innovative services through the dealership, such as allowing customers to schedule maintenance appointments and purchase insurance via a smartphone app. These initiatives aim to elevate the overall customer experience and contribute to increased sales in the fiercely competitive Indian automotive market.
While India holds the third position globally in new car sales, following China and the US, Japanese automakers have encountered limited success in this market, Suzuki Motor being a notable exception. Mitsubishi's strategy revolves around selling Japanese cars alongside local brands through this new collaboration, aiming to carve a niche in the dynamic Indian automotive landscape. As Mitsubishi positions itself to enter India's vibrant car sales sector, the partnership with TVS Mobility represents a strategic step toward expanding its footprint and capturing a share of the rapidly growing Indian automotive market.
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