TVS Automobile Solutions has partnered with Mitsubishi Corporation, Japan, by allowing the latter to take a substantial minority stake in the company. Subject to approval by Competition Commission of India (CCI)and other
relevant authorities, Mitsubishi will increase its stake from three percent to 25 percent in TVs Automobile Solutions through a combination of primary investment and secondary purchase. Mitsubishi Corporation invested the initial three percent in the company last year.
Since 1950s, Mitsubishi Corporation, has been engaged in the automotive manufacturing, distribution, financing and so on, in Japan and other overseas markets. Mitsubishi will introduce Japanese automotive parts suppliers and enhancement of price competitive parts line-ups for TVS. In addition, the company aims to deploy TVS Automobile Solutions’ successful business model in overseas markets.
“We are glad to have Mitsubishi Corporation as our strategic investment partner. This strategic investment goes to show the success of TVS as a scalable business model not only in India but also in overseas markets. We have also grown profitably and crossed Rs 1300 cr in revenue for FY19. Together with Mitsubishi, we would be exploring the overseas
opportunities in Africa and beyond,” said R Dinesh, Director, TVS Automobile Solutions.
S Wakabayashi, Senior Vice President, Mitsubishi Corporation, said, “This is an important partnership between two great organisations. Indian automotive aftermarket has grown in double digits consistently for many years now and is expected to grow constantly in the future. WithTVS Automobile Solutions’ business know-how and Mitsubishi Corporation’s global expertise, we will mutually have a win-win partnership.”