Mitsubishi To Acquire 32% Stake In India’s TVS Vehicle Mobility

Japanese conglomerate will acquire the shares in Indian auto dealer through private placement
Mitsubishi To Acquire 32% Stake In India’s TVS Vehicle Mobility

Japanese conglomerate Mitsubishi Corporation agreed to acquire a 32% stake in Indian auto dealer TVS Vehicle Mobility Solution Private Ltd. (TVS VMS), a part of Chennai-based TVS Group.

The company will subscribe to shares in TVS VMS, a spin-off of TVS Mobility Private Ltd., through the private placement, Mitsubishi said in a statement. It didn’t disclose the financial details, but local media reported that Mitsubishi will pay 300 crore Indian rupees ($36 million) to acquire a 32% stake in TVS VMS.

TVS Mobility is a global automobile corporate dealer and India’s largest distributor specializing in developing and supplying market-leading automobile solutions, according to its website.

Mitsubishi said the latest investment in TVS VMS, one of the largest multi-brand dealers in India, widens the group’s investment coverage through enhanced downstream service capabilities.

The investment will likely push Mitsubishi’s aim to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also leasing and other automotive operations by utilizing TVS VMS’ customer base and digital technology, it added.

In 2019, Mitsubishi had invested in one of India`s largest independent after-sales services providers TVS Automobile Solutions Ltd. (TASL) to gain a downstream foothold in the rapidly growing Indian automotive sector, according to the statement. TASL has a network of around 700 service centers and partnerships with 16,000 retailers of wholesale auto parts.

Mitsubishi said TVS Mobility, which established TVS VMS in December 2023, will spin off its automotive operations in 2024.

TVS VMS is one of the leading automotive dealers in India and its 152 dealerships carry construction and material handling equipment, in addition to distribution of commercial and passenger vehicles produced by number of automakers, it added.

The transaction is subject to approval by the relevant regulatory authorities.

Note: $1 = 83.0158 Indian rupees

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