Date: February 14, 2024. — Ashok Leyland has announced that it has invested a further ₹537 crore (INR 5.37 Billion) in its electric vehicle (EV) arm Switch Mobility. This is the second tranche of investment after the company had approved a total investment of ₹1,200 crore in Optare in November 2023.
Optare plc was a British bus manufacturer based in Sherburn-in-Elmet, North Yorkshire. Founded in 1985, it became a subsidiary of Ashok Leyland in 2010. However, in 2020, Optare plc rebranded as Switch Mobility. (~Gemini, Google)
With this investment, Ashok Leyland’s shareholding in Optare has increased from 92.19% to 92.59%. Optare is the holding company of Ashok Leyland’s EV businesses globally, including Switch Mobility Ltd UK and Switch Mobility Automotive Ltd India.
Ashok Leyland stated in a regulatory filing that Optare and Switch Mobility would utilize the new funds for capital investment, research and development, and meeting operational obligations in the UK and India, respectively.
Switch Mobility provides electric buses and vans, with over 280 electric vehicles in service and over 26 million miles traveled. Moreover, the company intends to use its skills and experience to extend its footprint in India and other emerging regions. It also aims to provide e-mobility solutions to customers worldwide.
Ashok Leyland’s Chairman, Dheeraj Hinduja, said, “Switch Mobility is at the forefront of developing cutting-edge electric vehicles that are both cost-effective and sustainable. We are confident that this additional investment will enable Switch Mobility to accelerate its growth. Switch Mobility aims to achieve its vision of being a global leader in zero-emission mobility solutions.”
Ashok Leyland’s Managing Director, Vipin Sondhi, said, “We delight in further strengthening our relationship with Switch Mobility. This partnership is a key pillar of our strategy to become a global player in the EV space. We believe that Switch Mobility has the potential to disrupt the commercial vehicle market with its innovative products and services. We look forward to supporting its growth in India and abroad.”
Optare reported a consolidated revenue of ₹230 crore in FY2022-23. This was compared to ₹244 crore in FY22 and ₹292 crore in FY21. Switch Mobility Ltd has stated that it plans to invest €100 million in an EV manufacturing facility in Spain.
News related to Ashok Leyland –
