Mahindra and Mahindra has announced entering a new partnership with automotive aftermarket player TVS Automobile Solutions to integrate its service arm, the Mahindra First Choice Services (MFCSL). As part of the deal, Mahindra First Choice Services will now become a subsidiary of TVS Automobile Solutions, while in turn, Mahindra will secure a stake in the latter's company. Mahindra says that this move will enable both companies to "combine their strengths to organise the highly fragmented automobile aftermarket services space in India." The partnership will also give Mahindra First Choice Services access to 'myTVS,' a multi-brand independent automobile aftermarket brand that offers integrated solutions across the aftermarket value chain.
Commenting on the partnership, R. Dinesh, Director, TVS Automobile Solutions said, "India's $10 bn aftermarket segment is fragmented and needs strong support for relevance and growth amidst changing technology landscape in the automotive sector. We would take this opportunity to bring thousands of entrepreneurs into a digital platform wherein they can get benefited from digital 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 the stakeholders."
Sharing his views on the partnership, V S Parthasarathy, President, Mobility Services Sector, Mahindra Group said, "I believe that consolidation, scale and phygital solutions will drive the next phase of growth for the company as well as the industry. I am confident that a strong partner like TVS ASPL will help take our legacy further and propel the company to the next orbit. I applaud the commitment and passion of our franchisees, distributors and employees and seek their support as we embark on the next phase of the journey."
TVS Automobile Solutions says that with myTVS, it has created a digital platform and ecosystem for over 2,500 garages especially across South India, and with MFCSL, the company aims to create a pan India digital footprint. TVS Automobile Solutions says that it will continue to invest and expand its network to over 10,000 garages in the next 18-24 months. MFCSL currently has a pan-India network of 475+ franchise partners and 100+ distributors present in over 350 towns across 25 states and 2 union territories. With this partnership, TVS ASL ensures delivery of service or parts within 24 hours across the country.