New Delhi: Ashok Leyland Ltd, the second-largest commercial vehicle manufacturer in India, has revealed its plans to invest up to ₹1,200 crores in Switch Mobility during the current fiscal year. This investment aims to meet the capital requirements of the electric vehicle unit, as the company’s external fundraising efforts have experienced delays. Dheeraj Hinduja, the chairman of Ashok Leyland, made this announcement.
After evaluating the plan last year, Switch Mobility has decided against establishing a new factory. Instead, the company will utilize Ashok Leyland’s existing facility to manufacture its products. As a part of this arrangement, a portion of the investment from Ashok Leyland will be allocated towards acquiring equipment for the factory.
The allocated funds will not only support the establishment of the manufacturing facility but also contribute to the development of new electric light commercial vehicles and double-decker buses. While Ashok Leyland is actively supporting Switch Mobility’s operations, the latter remains committed to attracting external investors who possess a long-term perspective. Ongoing discussions are being held with potential investors in this regard, as stated by Hinduja.
By leveraging Ashok Leyland’s resources and capital, Switch Mobility aims to bolster its production capabilities and expand its product portfolio. The investment underscores Ashok Leyland’s commitment to promoting electric mobility and supporting the growth of Switch Mobility as a key player in the Indian electric vehicle market.