AA creates roadside assistance joint venture
AA has struck a deal with TVS Automobile Solutions Ltd to create a roadside assistance joint venture in India.
AA will take a 49 per cent stake in the joint venture in return for a £4m investment. The joint venture will give it access to TVS’s network and will allow it to leverage its existing relationships with car manufacturers in the Indian market.
TVS is an India-based roadside assistance business and is a unit of TVS & Sons, the Indian automotive conglomerate.
Bob Mackenzie, AA’s chief executive said, ‘India is one of the fastest growing markets in the world, with sales of passenger cars forecast to triple within the next five years. Roadside assistance in India is relatively undeveloped and is currently entirely focussed on the business market rather than the consumer market.’
‘The joint venture will be able to capitalise on our leading position in the UK B2B market and operational experience. In addition, with vehicle ownership expected to increase significantly, there is a real opportunity for us to take a pioneering role in the B2C market in India,’ added Bob.