Ashok Leyland to Invest Rs.1,200 Crore in EV Mobility Solutions

On November 9, Ashok Leyland announced that its board of directors had approved an investment of Rs 1,200 crore in its EV arm Switch Mobility for capital expenditure, R&D, and meeting operational requirements in both the UK and India. Following the necessary statutory approvals, the funds will be infused in one or more tranches over the next few months, according to Ashok Leyland.

"At their meeting on Nov 9, the board of directors of Ashok Leyland approved an investment of Rs 1,200 crore in switch mobility as equity through its holding company Optare PLC UK," Leyland Executive Chairman Dheeraj G Hinduja Ashok said at a virtual media briefing following the second quarter earnings announcement.

"The funds infused will be used for capital expenditure, R&D and meeting operational requirements both in the UK and India.

"Electric vehicles, especially in buses and light trucks, have a very bright future as governments and private customers are driving the green agenda. We are very happy with the progress made by Switch, and will continue to invest on building its capabilities," Hinduja said in the statement.

Ashok Leyland believes Switch will expand further in European markets with the launch of its new E1 12m bus designed specifically for the European market in 2024.

"Our portfolio of electric buses will cover value and premium segments meeting all price points for many global markets," he said.

The Switch Group of companies (Switch Mobility Ltd in the United Kingdom and Switch Mobility Automotive Ltd in India) is Ashok Leyland's e-mobility initiative, focusing on e-buses and e-LCVs. Switch currently operates over 800 buses in India and the United Kingdom, with an order book of over 1,200 buses, according to the company. Switch India launched India's first double-decker e-bus last year, and its e-LCVs in September of this year.