TVS Mobility and Japan-based Mitsubishi Corp are to enter into an agreement under which Mitsubishi Corp will pick up close to one-third stake in a new company, a spin-off of the business of the former.

“Mitsubishi Corporation has agreed to subscribe to shares (about 32%) in TVS Vehicle Mobility Solutions Pvt Ltd (TVS VMS) through private placement. The completion of these transactions is subject to approval by the relevant regulatory authorities, the Japanese company said a statement.

This investment is intended to develop comprehensive mobility solutions spanning not only after-sales services and multi-brand sales, but also leasing and other automotive operations by utilising the extensive customer base and digital technology of TVS Mobility’s arm, it added

Mitsubishi had invested in TVS Automobile Solutions (TASL), a network of roughly 700 service centres, and partnerships with 16,000 retailers of wholesale auto parts connected through digital technology.