One of the top automakers in India, Ashok Leyland, said on Thursday that its board had approved a Rs 1,200 crore investment in its electric vehicle division, Switch Mobility. The money will be used for R&D, capital projects, and fulfilling operating needs in India and the UK.
Investment Specifics of Ashok Leyland
Following the required statutory approvals, the investment will be made in one or more tranches over the course of the upcoming several months. Via its parent firm Optare PLC UK, Ashok Leyland‘s board of directors approved the investment. The money will be utilised for R&D, capital projects, and fulfilling operating needs in India and the UK.
- Highlight Light Trucks and Electric Buses
With the introduction of its new E1 12m bus, which was created especially for the European market, in 2024, Ashok Leyland is optimistic that Switch will continue to expand in the European markets. The company will offer electric buses in both value and premium categories, catering to a wide range of price points in numerous international markets.
- Change Mobility’s AdvancementÂ
With over 800 buses operating in India and the UK and over 1,200 buses on order, Switch Mobility is Ashok Leyland’s e-mobility programme. Switch India introduced its e-LCVs in September of this year and the country’s first double-decker e-bus last year. Additionally, the business has inked a deal for more than 13,000 e-LCV vehicles, which it will begin delivering in the fourth quarter of this fiscal year.
- Market Prospects and Expansion StrategiesÂ
The quest towards carbon neutrality is fueling the explosive growth of the electric vehicle (EV) market. The EV truck and bus markets in Europe and India are expected to be significant growth drivers. In the upcoming year, Ashok Leyland anticipates that its e-LCVs will accelerate client acceptance.
- Strategic Partner
Ashok Leyland had intended to enlist the help of a strategic partner for Switch Mobility, but the business has made the decision to carry on growing on its own. The company’s faith in the strength of Switch Mobility’s business goals is further evidenced by the infusion of Rs 1,200 crore.
The Rs 1,200 crore Ashok Leyland investment in Switch Mobility is a big move in the right direction for the company’s EV business expansion. Switch Mobility is ideally positioned to benefit from the rising demand for environmentally friendly transport options in Europe and India because of its concentration on electric buses and light trucks.
