Mitsubishi Corporation is preparing to enter the Indian auto industry this summer in a calculated move. As per a report published in Nikkei Asia, the Japanese trading giant intends to purchase a stake of over thirty percent in TVS Mobility, a well-known car dealership that operates all over India.
Financial Prognosis
Mitsubishi's investment is expected to be between 5 and 10 billion yen, or roughly $33 million and $66 million, pending the required regulatory approvals. Mitsubishi plans to implement a hands-on approach to its new venture by stationing its personnel at TVS Mobility's dealerships once everything is finalised.
Plans for TVS Mobility Restructuring and Expansion
TVS Mobility will spin off its vehicle sales division in accordance with the agreement, and Mitsubishi will acquire a sizeable share of the resulting company. The new business intends to create specialised stores for every auto brand by utilising TVS Mobility's vast network of approximately 150 locations, with the goal of growing into one of India's biggest independent auto dealerships.
This dealership's primary goal is to increase Honda vehicle sales, which are presently handled by TVS Mobility. In order to diversify the lineup and bring more Japanese car brands and models to the Indian market, Mitsubishi intends to spearhead talks with Japanese automakers.
The project's notable emphasis on electric vehicles (EVs) is consistent with India's initiatives to promote EV adoption in the nation. This calculated action shows how important sustainable mobility options are becoming.
Competitive Environment
Beyond just selling cars, Mitsubishi has big plans to launch cutting-edge services like using a smartphone app to schedule maintenance and buy insurance. These initiatives aim to increase revenue and improve customer satisfaction, particularly given the intense competition in the Indian auto industry.
Bridging the Gap
With the exception of Suzuki Motor, Japanese automakers have had little presence in India's new car market, despite the country ranking third in the world for new car sales, behind China and the US. Mitsubishi's new venture seeks to bridge this gap by offering a diverse range of Japanese cars alongside local brands, marking a significant development in India's automotive landscape.
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