In a strategic move set to reshape the landscape of Indian automotive services, TVS Mobility, demerged from T V Sundram Iyengar & Sons Private Limited, has announced a significant joint venture with the renowned Japanese conglomerate, Mitsubishi Corporation (MC). Beyond its financial investment, MC brings its global experience and best practices to expedite the scaling up of this revolutionary business model.
Mitsubishi Corporation will initiate an investment of INR 300 crore, with both entities dedicated to fostering the growth of this venture. The envisioned business model targets vehicle ownership across Passenger Cars, Commercial Vehicles, and Material Handling Equipment (MHE), projecting a potential revenue of $2 billion within the next 3-5 years, subject to regulatory approvals.
Even as car dealerships fall under the umbrella of TVS VMS, the primary clientele remains fleet operators of commercial vehicles and off-highway vehicles. In a conversation with Mobility Outlook, Srinivasa Raghavan, Global President & CEO of TVS Mobility, emphasised that TVS VMS is poised to empower corporates to concentrate on their core business activities while all other elements in the eco-system is offered as service. Elaborating the concept, he said the company will take charge of aspects such as financing, leasing, and insurance through its strategic partners. Simultaneously, the service component will be managed by its sister concern, Ki Mobility Solutions. “For corporates, the big advantage is that they will be dealing with only one brand (TVS VMS) instead of multiple entities. They will operate several projects in multiple locations,” and it would be difficult to manage all aspects of right from purchasing or leasing till after sales service, he said. The multifaceted approach, spanning after-sales services, multi-brand sales, and innovative vehicle-as-a-service models, aims to cater to the diverse needs of Indian consumers and stakeholders, he added.
TVS Mobility's Director, R Dinesh, said, 'This collaboration with MC will enable TVS to provide a range of solutions to the entire vehicle mobility ecosystem. After pioneering the sales, service, and distribution of vehicles in India, the TVS VMS venture will offer innovative and digitally enabled solutions to our customers, expanding our partnerships with vehicle manufacturers and providing integrated solutions across vehicle sales, vehicle operations, and 'Vehicle-as-a-Service' (Micromobility) solutions.'
Dinesh further highlighted the venture's commitment to collaborating with stakeholders to provide comprehensive solutions for all participants in the evolving automotive landscape.
Commenting on the collaboration, Shigeru Wakabayashi, CEO, Automotive and Mobility Group at Mitsubishi Corporation, said, 'India, boasting the world's third-largest market for new automobiles, presents an immense growth opportunity. The investment in TVS VMS aligns with MC's broader strategy to develop comprehensive mobility solutions, covering after-sales services, multi-brand sales, vehicle-as-a-service models, and other automotive operations. This collaboration underscores our commitment to gaining a foothold in India's rapidly expanding market.'
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