TVS Automobile Solutions Pvt Ltd, (TVS ASPL), part of $8.5 billion TVS Group, has acquired the service business of Mahindra First Choice Services Ltd (MFCSL), a pan-India chain of multi-brand car and two-wheeler service workshops. MFCSL belongs to the $19.4 billion Mahindra Group.
As part of the transaction, Mahindra and Mahindra Ltd will secure a minority stake in TVS ASPL and in turn, MFCSL will become a subsidiary of TVS ASPL.
MFCSL will integrate its operations with TVS ASPL. The move will enable the two organisations to combine their strengths and organise the highly fragmented automobile aftermarket services space in India, providing superior value to customers, channel partners, employees and other stakeholders.
R Dinesh, Director, TVS ASPL said India’s $10 billion aftermarket segment is fragmented and needs strong support for relevance and growth amid changing technology landscape in the automotive sector.
"We are taking this opportunity to bring thousands of entrepreneurs on to a digital platform through which they can benefi from technologies across marketing, diagnostics, customer experience, quality parts, access to training and digital payments. I am sure this partnership will be a win-win proposition for all stakeholders.”
V S Parthasarathy, President, Mobility Services Sector, Mahindra Group said, “MFCSL has developed a large, trusted, multi-brand car service franchise and distribution network over the years. Our focus on quality and customer satisfaction has ensured that we continue to deliver superior value to our customers and channel partners.”
G Srinivasa Raghavan, Managing Director, TVS ASL added, “myTVS has created a digital platform and ecosystem for over 2,500 garages especially across South India. With MFCSL, we will have an opportunity to create a pan India digital footprint."
He said that the company will continue to invest and expand its network to over 10,000 garages in the next 18-24 months.
"It is imperative that we take this positioning to help organise the fragmented garage ecosystem so that we can continue to provide superior customer experience to the growing automotive population and help these garages by making them future ready,” Raghavan asserted.
The Indian independent automotive aftermarket has been growing at a CAGR of 7-10 per cent over the past five years. The market is highly fragmented with over 40,000 retailers, 100,000 garages and thousands of small distributors across the country.
MFCSL has established a pan-India network of 475-plus franchise partners and 100-plus distributors in over 350 towns across 25 states and two union territories.
TVS ASL has, over the years, empowered two million customers, 20,000 retailers and 10,000 garages, along with fleet management for over 70,000 vehicles. By bringing these stakeholders into a seamless supply chain and technology platform, TVS ASL ensures delivery of service or parts within 24 hours across the country.