TVS Mobility and Japan-based Mitsubishi Corp have announced an agreement, under which Mitsubishi Corp will acquire almost one-third stake in a new company, a spin-off of the business of TVS Mobility.
According to Mitsubishi Corporation, they have agreed to subscribe to shares (about 32%) in TVS Vehicle Mobility Solutions Pvt Ltd (TVS VMS) through private placement. The completion of these transactions is subject to approval by the relevant regulatory authorities.
This investment is intended to develop comprehensive mobility solutions including after-sales services, multi-brand sales, leasing, and other automotive operations by utilizing the extensive customer base and digital technology of TVS Mobility’s arm.
Mitsubishi has previously invested in TVS Automobile Solutions (TASL), a network of roughly 700 service centers, and partnerships with 16,000 retailers of wholesale auto parts connected through digital technology.
The exact financial details of the deal have not been disclosed, but this strategic partnership between TVS Mobility and Mitsubishi Corporation is expected to enhance the range of mobility services being offered by TVS Mobility and strengthen their position in the market.
Overall, this collaboration is a significant development in the automotive industry, and it will be interesting to see how TVS Mobility and Mitsubishi Corporation leverage their strengths to revolutionize mobility solutions and services in the future. The completion of this deal is eagerly anticipated and is bound to have a far-reaching impact on the industry.
