Leyland to invest up to ₹1,200 cr in Switch Mobility

Ashok Leyland Ltd, India’s second-largest commercial vehicle maker, plans to invest as much as ₹1,200 crore in Switch Mobility during this fiscal year to fund the electric vehicle unit’s capital requirements as external fundraising efforts face delays, said Dheeraj Hinduja, chairman of Ashok Leyland.

- Alisha Sachdev

 

Switch Mobility has decided against setting up a new factory after evaluating the plan last year. Instead, the company will use Ashok Leyland’s facility to build its products, allocating a portion of the investment from the parent towards acquiring equipment for the factory.

The funds will also be utilized to develop new electric light commercial vehicles and double-decker buses. Switch Mobility, however, remains eager to attract external investors with a “long-term mindset", and discussions to that effect are going on, Hinduja said.

“The global market has changed a lot in how it views electric vehicle companies. Ashok Leyland will continue to invest in the growth of Switch. We have strong financials, and the requirements for Switch are easily met by us," Hinduja said.

Switch Mobility has 2,500 orders, primarily for electric buses from India and close to 100 from the UK.