TOKYO, June 3, 2019 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce that it has agreed to increase its stake in TVS Automobile Solutions Private Limited (TASL) from 3% to 25%. The additional 22% includes shares purchased from TASL's founder and existing shareholders (approx. 9%) and the subscription to new third-party shares (approx. 13%). The completion of these transactions is subject to approval by the relevant authorities.
TASL provides aftersales services to multiple brands in India's automotive sector, and its diverse operations include automotive parts sourcing, and the sale, repair and maintenance of automobiles. In addition to its nationwide supply network in India, TASL is capable of sourcing competitively priced parts directly from Western and other overseas suppliers, a strength that stands out among Indian enterprises. There are currently 15,000 TASL outlets in India serving 1.5 million customers. The company has also developed an app, which has made it even easier for customers to order and pay for parts.
Indian Automotive Market
India boasts the world's fourth-largest market for new automobiles, with sales topping four million vehicles in 2017. With economic growth in India strengthening its consumer purchasing power and leading to more upgrades in its road and other infrastructure, its automobile sales are expected to reach the seven-million mark by 2025.
Transition & Direction of MC's Automotive Business
MC has been engaged in overseas automotive businesses since the 1950s. Primarily targeting Thailand, Indonesia and other ASEAN markets, its operations cover everything from automobile manufacturing to sales and sales financing. In 2012, MC got involved in manufacturing and sales in India, where it is currently working to expand its operations. Customer needs are evolving due to rapid transformations that have taken place in the automotive sector in recent years.
Recognizing this, MC has made it a top priority to grow its customer base in India's downstream fields, where it hopes to strengthen its presence by forging new links in its value chain and making a genuine commitment to the aftersales business.
By increasing its interest in TASL, MC will play a more active role in the company's management. MC plans to help grow TASL's lineup of competitively priced automobile parts by connecting it with Japanese suppliers, while at the same time leveraging MC's own overseas network to develop TASL's business model outside India. These efforts should contribute to mutually sustainable business growth.
About Mitsubishi Corporation
Mitsubishi Corporation, headquartered in Tokyo, is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. Mitsubishi Corporation's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
For more information on Mitsubishi Corporation, please visit the company's website at https://www.mitsubishicorp.com/jp/en/.
June 3, 2019 18:05 HKT/SGT
Source: Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058)
Topic: Press release summary
From the Asia Corporate News Network
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