Mahindra First Choice Services (MFCSL) is a pan-India chain of multi-brand car and two-wheeler service workshops while TVS Automobile Solutions (TVS ASPL) is an independent automotive aftermarket player.

MFCSL will partner with TVS ASPL, which houses 'myTVS,' a multi-brand independent automobile aftermarket brand that offers integrated solutions across the aftermarket value chain. As part of the transaction, M&M will secure a stake in TVS ASPL and in turn, MFCSL will become a subsidiary of TVS ASPL.

The stake in MFCSL will be sold by Mahindra Holdings, a wholly owned subsidiary of M&M. The transaction is subject to regulatory approvals, including an approval from the Competition Commission of India (CCI).

The transaction will enable the respective organisations to combine their strengths to organise the highly fragmented automobile aftermarket services space in India, thereby providing superior value to customers, channel partners, employees and other stakeholders.

The Indian independent automotive aftermarket has been growing at a CAGR of 7-10% 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 highly reputed pan-India network of 475+ franchise partners and 100+ distributors present in over 350 towns across 25 states and 2 union territories.

TVS ASL, over the years, has established a strong leadership by empowering over 2 million customers, 20,000 retailers, 10,000 garages along with fleet management for over 70,000 vehicles.

M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.

The automaker reported 59.7% decline in net profit to Rs 148.36 crore in Q2 FY21 from Rs 368.43 crore in Q2 FY20. Net sales fell 1.5% year-on-year (Y-o-Y) to Rs 23,566.75 crore during the quarter.