Ashok Leyland, the Chennai-based commercial vehicle manufacturer, has announced a substantial investment plan to strengthen its electric mobility arm and financial position. The company will invest Rs 500 crore in Optare PLC, the holding company of its electric vehicle subsidiary, Switch Mobility. Additionally, Ashok Leyland will inject Rs 200 crore into Hinduja Finance to enhance its capital adequacy requirements.
Supporting Growth in Electric Mobility
Switch Mobility, Ashok Leyland’s electric vehicle division, is experiencing significant growth, securing an order book of over 1,800 electric buses by the end of Q3 FY25. This includes a noteworthy export order of 100 buses from Mauritius. The company’s electric light commercial vehicles (e-LCVs) are also witnessing steady progress, with monthly sales surpassing 100 units.
Strategic Investments and Expansion Plans
The decision to invest in Switch Mobility’s holding company and Hinduja Finance comes after a previous equity infusion of Rs 1,200 crore into Switch Mobility nearly a year ago. The new investments will support Switch’s continued capital expenditure and expansion plans. While Ashok Leyland’s capital expenditure for the next fiscal year is still under review, estimates suggest a range of Rs 800 crore to Rs 1,000 crore for FY25.
This strategic funding aims to accelerate Ashok Leyland’s efforts in the electric mobility space and ensure financial stability as the company pursues its long-term growth objectives.
