Commercial vehicle giant gears up for EV revolution; Invests Rs 1200 crore in its electric mobility arm

The funds infused for this ambitious venture are set to fuel capital expenditure, research and development endeavors..

In a strategic move, Ashok Leyland Ltd, a key player in the commercial vehicle sector, has given the green light to invest a whopping Rs 1200 crore in Switch Mobility. This massive infusion will be facilitated through its holding company, Optare PLC in the UK, underlining Ashok Leyland's commitment to embracing the electric vehicle revolution.

The funds infused for this ambitious venture are set to fuel capital expenditure, research and development endeavours, and address operational needs on both UK and Indian fronts. The stage is now set for a substantial revamp in Ashok Leyland's electric mobility arm, as the funds are poised to roll out over the next few months, pending essential statutory approvals, in a series of financial tranches.

Switch Mobility, encompassing entities such as Switch Mobility Ltd in the UK and Switch Mobility Automotive Ltd in India, is the cornerstone of Ashok Leyland's electric mobility initiative. The focus here is firmly on electric buses and electric light commercial vehicles (e-LCVs). Over the past few years, Switch India has been on a remarkable journey, securing substantial orders from State Transport Undertakings and making its mark as a potent player in the electric mobility landscape.

As of the latest update, Switch Mobility has already put more than 800 electric buses on the road, and the order book is stacked with a demand for over 1200 more. The successful launch of India's only double-decker e-bus last year signalled their significant achievement, and the introduction of state-of-the-art e-LCVs in September 2023 has created quite a buzz. The company is all set to deliver on its promise, with signed Memorandums of Understanding (MOUs) accounting for over 13,000 e-LCVs, expected to hit the roads in the fourth quarter of the current fiscal.

Mr. Dheeraj G Hinduja, the Executive Chairman of Ashok Leyland, commented on this substantial investment, stating, "Electric vehicles, especially in buses and light trucks, have a very bright future as Governments and private customers are driving the green agenda."

Mr. Shenu Agarwal, the Managing Director & CEO of Ashok Leyland, emphasized the growing market for EVs and its alignment with the carbon neutrality trend.

It's an electrifying road ahead for Ashok Leyland and Switch Mobility, and the market is watching closely as they gear up for the electric future.

Disclaimer: The article is for informational purposes only and not investment advice.