Ashok Leyland announces INR 1200 crore investment in Switch Mobility for EV expansion

The Board of Directors of Ashok Leyland, in their recent meeting on November 9, 2023, has approved an investment of Rs 1200 crore in Switch Mobility as equity through its holding company Optare PLC UK. The funds will be utilized for capital expenditure, research and development, and operational requirements in the UK and India. The infusion of funds will occur in one or more tranches over the next few months, subject to necessary statutory approvals.

Switch Group of Companies, comprising Switch Mobility Ltd in the UK and Switch Mobility Automotive Ltd in India, spearheads the Electric Mobility initiative of Ashok Leyland, focusing on electric buses (e-Buses) and electric light commercial vehicles (e-LCVs). In recent years, Switch India has secured significant orders from State Transport Undertakings. Currently, over 800 buses from Switch are operational in India and the UK, with an order book exceeding 1200 buses. Last year, Switch India launched India’s only Double Decker e-Bus.

In September 2023, Switch India introduced its advanced e-LCVs and signed Memorandums of Understanding for over 13,000 vehicles, with deliveries commencing from the fourth quarter of the current fiscal year.

Mr Dheeraj G Hinduja, Executive Chairman, Ashok Leyland, stated, “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 we will continue to invest on 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.”

Mr 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.”

Also Read: Switch India launches next-generation electric bus platform – SWITCH EiV 12