Ashok Leyland advances electric future with Rs 1,200cr investment in Switch Mobility

In a major move to strengthen its electric vehicle (EV) division, Ashok Leyland’s Board of Directors has approved a significant investment of Rs 1200 crore into Switch Mobility. This equity infusion, routed through holding company Optare PLC UK, is earmarked for the expansion of product portfolio, enhancement of research and development, and operational growth across both the UK and Indian markets. The commitment of funds, to be released in subsequent months pending necessary approvals, aims to strategically propel the EV initiatives of Ashok Leyland, with an emphasis on e-Buses and electric light commercial vehicles (e-LCVs).

Switch Mobility’s Evolving Electric Vehicle Portfolio

Switch Mobility, which encompasses Ashok Leyland’s electric mobility efforts, has garnered substantial success in the e-Bus segment within India, receiving significant orders from State Transport Undertakings. To date, the company boasts over 800 buses in operation and a robust order book of 1200+ buses. Following the successful debut of India’s only Double Decker e-Bus last year, Switch India has also launched advanced e-LCVs and secured MOUs for over 13000 vehicles, set to be delivered from the fourth quarter of the current fiscal year.

Leadership Outlook on Electric Vehicle Growth and Investments

Ashok Leyland’s leadership underlines the promising future of electric vehicles. Dheeraj G Hinduja, Executive Chairman, expressed optimism about Switch’s trajectory, particularly in the European market with the upcoming launch of the new E1 12m bus tailored for Europe. Moreover, Shenu Agarwal, Managing Director & CEO, emphasized the rapidly expanding market for EVs, propelled by global shifts toward carbon neutrality and government support. He highlighted the dual focus on product innovation and operational expansion, underscoring the significance of both Indian and European markets for EV trucks and buses. “The balance sheet of Ashok Leyland can comfortably fund the initiatives of Switch,” Agarwal assured.