Ashok Leyland has announced its plan to invest INR 1200 crore into its electric mobility arm — Switch Mobility. The funds will be used for capital expenditure and meeting operational requirements in the UK and India.
The investment plan was announced at the board of directors meeting, which took place on November 9, 2023. The members of the board approved an investment of INR 1200 crore in Switch Mobility as equity through its holding company Optare PLC UK. The funds are said to be infused over the next few months after the necessary approvals take place.
Switch Mobility has already delivered 800+ buses in the UK and India and commands an order book of 1200 buses. The fresh infuse of capital will help the company expand its research and development while also meeting the operational requirements for production. Switch Group of Companies, which is the parent company of (Switch Mobility Ltd – UK and Switch Mobility Automotive Ltd- India, is the electric mobility arm of Chennai-based Ashok Leyland.
Switch Mobility has found success in securing orders from State Transport undertakings. The company secured the contract to supply double-decker electric buses to the Maharashtra government, replacing the iconic double-decker buses in the state. Recently, the Delhi Government also inked a contract with Switch Mobility, ordering 950 low-floor electric buses.
In September 2023, Switch Mobility launched its new e-LCV, securing a contract for 13,000 vehicles. The company plans to begin deliveries of its latest e-LCV in the fourth quarter of the current fiscal year. Moving forward, “the company is confident to have a steady growth in the European markets with the launch of the E1 12m bus, which has been developed specifically for the European market”, said Dheeraj G Hinduja, Executive Chairman, Ashok Leyland.
Adding to the statement of Hinduja, Shenu Agarwal, Managing Director & CEO, Ashok Leyland said, “The market for EVs is growing rapidly driven by the trend towards Carbon Neutrality. The Government support is further helping the market to expand. We will continue to build capability in this business by investing in product development as well as in expanding operations. Both India and European markets are going to be important growth centers for EV trucks and buses. In the coming year we are expecting our e-LCVs to drive faster customer adoption. The balance sheet of Ashok Leyland can comfortably fund the initiatives of Switch.”