Japanese trading house Mitsubishi Corp is set to enter the car sales business in India this summer, acquiring a stake of over 30 percent in Indian car sales major TVS Mobility which operates car dealerships in the country, according to financial daily Nikkei Asia.
Under the agreement, TVS Mobility will spin off its car sales business, with Mitsubishi taking a stake of over 30 percent in the new entity, the Nikkei Asia report stated. The investment, expected to be between 5 billion to 10 billion yen ($33 million to $66 million), is subject to regulatory approvals. Mitsubishi plans to dispatch its employees to the dealership after the investment is finalised, further noted the report.
The new company will create dedicated showrooms for each car brand, utilising TVS Mobility’s 150 existing outlets. Initially, the emphasis will be on boosting sales of Honda cars, which are already in TVS’s lineup, as per the report. Mitsubishi will spearhead discussions with Japanese automakers to enhance the range of Japanese car brands and models offered.
The dealership will offer electric vehicles (EVs) as part of its lineup, with Mitsubishi aiming to promote the wider adoption of EVs in India. The company also plans to introduce new services, such as enabling customers to schedule maintenance appointments and purchase insurance through a smartphone app, to enhance the customer experience and boost sales in the competitive Indian market.
