TVS Automobile Solutions has signed a 51:49 joint venture with the US-based The Warranty Group (TWG) for providing warranty solutions to cars, SUVs, commercial vehicles and off-road farm equipment.
21 Feb 2014 | 6313 Views | By Kiran Bajad
TVS Automobile Solutions has signed a 51:49 joint venture with the US-based The Warranty Group (TWG) for providing warranty solutions to cars, SUVs, commercial vehicles and off-road farm equipment. The JV intends to cover 50,000 vehicles in the first year and a million vehicles in the next five years.
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TVS Automobile Solutions has signed a 51:49 joint venture with the US-based The Warranty Group (TWG) for providing warranty solutions to cars, SUVs, commercial vehicles and off-road farm equipment. The JV intends to cover 50,000 vehicles in the first year and a million vehicles in the next five years.
The initial investment in the joint venture will be around US$ 4 million (Rs 25 crore).
TVS Automobiles Solutions through its MyTVS brand provides a range of services including warranty solutions. This is the second international JV for the company; last year it partnered with Myers Tire Supply.
The warranty management solutions will be offered in the B2B segment and will provide a number of support service and opportunities to OEMs including managing preventive vehicle maintenance, prepaid maintenance, comprehensive and annual maintenance programs, packaging and serving products.
The warranty solutions for customers can be availed when the vehicles is beyond the original manufacturer’s warranty period. Coverage is available up to a period of seven years from the date of manufacturing of the vehicles.
Talking to Autocar Professional, Sanjay Nigam, president and CEO, TVS Automobiles Solutions, said, “TWG will help us to enhance our technical capabilities and market solutions for innovative, customer focused warranty programs. We aim to further strengthen our relations with OEMs and help them acquire new customers, improve customer loyalty.”
TWG, a $2 billion company, has a presence in 19 countries and offers service in 33 countries. This is its its first JV globally. Tom Warsop, president and CEO of the Warranty Group, said, “TVS ASL is the right partner for us to enter India and we look to leverage TVS’ understanding of the Indian market, client relationship and administrative capabilities.
As TVS ASL looks to enter the market abroad, Nigam said this JV will also help drive growth in overseas markets. Without giving a concrete timeline, he said, “In a year’s time, we could venture either into neighbouring countries or the Middle East.”
Photograph (L-R): Sanjay Nigam, president and CEO, TVS Automobiles Solutions, R Dinesh, director, TVS Automobiles Solutions, and Tom Warsop, president and CEO of the Warranty Group