Ashok Leyland to Inject Rs. 1,200 Crore into Switch Mobility

In a significant move, the Board of Directors of Ashok Leyland convened recently and greenlit an investment of Rs. 1,200 crore in Switch Mobility as equity through its holding company, Optare PLC UK. This substantial investment is earmarked for capital expenditure, research and development, and meeting operational requirements, spanning both the UK and India. The infusion of funds is set to occur over the next few months, contingent on the receipt of necessary statutory approvals, and will be executed in one or more tranches.

Switch Mobility, encompassing Switch Mobility Ltd. in the UK and Switch Mobility Automotive Ltd in India, serves as the hub for Ashok Leyland's Electric Mobility initiative, with a primary focus on e-Buses and e-LCVs. Over the past years, Switch India has achieved considerable success, securing orders from State Transport Undertakings. Presently, Switch operates over 800 buses in India and the UK, with an order book exceeding 1,200 buses. The company made a notable mark with the introduction of India's sole Double Decker e-Bus last year.

In September 2023, Switch India unveiled its cutting-edge e-LCVs and has signed memorandums of understanding (MOUs) for over 13,000 vehicles, slated for delivery in the fourth quarter of the current financial year.

Dheeraj G Hinduja, Executive Chairman of Ashok Leyland, expressed confidence in the growth of electric vehicles, particularly in buses and light trucks, emphasizing the bright future of this segment. He stated, "We are very happy with the progress made by Switch, and we will continue to invest in building its capabilities. We are confident that Switch will grow further in the European markets with the launch in 2024 of our new E1 12m bus developed specifically for the European market. Our portfolio of electric buses will cover value and premium segments, meeting all price points for many global markets."

Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, highlighted the rapid growth of the electric vehicle market, driven by the push towards carbon neutrality and government support. Agarwal affirmed the company's commitment to enhancing capability in the electric mobility business through continued investment in product development and expanding operations. He anticipated accelerated customer adoption of e-LCVs in the coming year and expressed confidence in Ashok Leyland's financial capacity to fund Switch's initiatives.

This substantial investment underscores Ashok Leyland's commitment to advancing its electric mobility portfolio and contributing to the evolving landscape of sustainable transportation.

BS