Mumbai-Based Ashok Leyland Commits Rs 1,200 Crore Investment in Electric Vehicle Subsidiary, Switch Mobility The Board of Directors approved this infusion for capital expenditure, research and development (R&D), and operational needs in both the UK and India.
The funds will be infused over the next few months, subject to statutory approvals, and will be administered in one or more tranches.
Dheeraj G Hinduja, Ashok Leyland’s Executive Chairman, revealed the move during a virtual media briefing following the announcement of the company’s second-quarter earnings.
Switch Mobility, comprising Switch Mobility Ltd in the UK and Switch Mobility Automotive Ltd in India, serves as Ashok Leyland’s e-mobility initiative. The company is optimistic about Switch’s expansion in European markets, particularly with the anticipated launch of its new E1 12m bus tailored for the European market in 2024.
The combined Switch entities in India and the UK currently operate over 800 buses, with an order book exceeding 1,200 buses. Last year, Switch India introduced India’s sole double-decker e-bus, and in September of this year, it unveiled its e-LCVs.
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, highlighted the rapidly growing market for electric vehicles, driven by the pursuit of carbon neutrality and government support.
Additionally, she also underlined the company’s commitment to developing products and expanding operations in the EV sector. With an order book of over 13,000 vehicles for its e-LCVs, Ashok Leyland aims to commence deliveries in the fourth quarter of this fiscal year.
Regarding potential strategic partnerships, Hinduja clarified that, after careful consideration, the board decided to continue the growth trajectory without a partner.
