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highlights
Mitsubishi may start car business in India soon.
Signed deal with TVS under joint venture.
TVS will invest Rs 300 crore in vehicle mobility solutions.
New Delhi. Cars of Japanese car manufacturer Mitsubishi will soon be seen running on the roads of India. The company had closed its business from India many years ago, but now the company is preparing to enter the Indian market again. According to reports, the company has announced to start a joint venture in partnership with two-wheeler manufacturer TVS Motors, under which the company will buy 30 percent stake in TVS Mobility. It is being told that Mitsubishi can acquire 32 percent stake in TVS Mobility with an investment of Rs 300 crore. This new joint venture has been named “TVS Vehicle Mobility Solution” (TVS VMS).
Speaking to CNBC-TV18, R Dinesh, Director, TVS Mobility, said, “The joint venture between TVS Mobility and Mitsubishi will develop the mobility solution ecosystem and help us grow faster. He said that under this joint venture, there are plans to develop off-road equipment, electric vehicles and even locomotives for last mile connectivity.
TVS will help in business expansion
Company director R. Dinesh said that under the joint venture, Mitsubishi will take the help of TVS Mobility’s existing dealerships to expand its business in India. The company will open its showroom taking advantage of more than 150 outlets of TVS. TVS Mobility has dealerships of leading companies like Ashok Leyland, Honda, Mahindra and Renault etc. and is mainly located in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Telangana and Madhya Pradesh. The remaining 68 percent stake of the new company will be with TVS Mobility.
mitsubishi’s goal
A revenue target of ₹15,000 crore has been set under the joint venture between TVS and Mitsubishi. Under the joint venture, revenue is expected to reach $2 billion in the next three to five years. India is the world’s third largest market for automobiles after America and China, where more than 50 lakh vehicles were sold last year. The automobile market is expected to grow at the rate of 6% to 7% in the next few years.
A statement said that Mitsubishi is focusing strongly on the Indian market. The company said that there is more scope for expansion in the Indian market compared to neighboring markets, where Mitsubishi is already present. The company will increase its focus on digital solutions, connected mobility and electric vehicles through joint venture with TVS.
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Tag: auto news, automobile, cars
first published : February 20, 2024, 10:57 IST
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