Ashok Leyland, the flagship company of the Hinduja Group, is actively seeking external investments for its electric vehicle division, Switch Mobility. The company’s Managing Director and CEO, Shenu Agarwal, expressed the importance of finding the right strategic partner to ensure a favorable valuation. However, until such a partner is found, Ashok Leyland is willing to invest independently to support the growth of Switch Mobility.
While Switch India is projected to remain cash neutral or even cash positive in the future, Switch UK may require additional investments in the fiscal year 2025 due to relatively weaker European and British markets. Agarwal emphasized the need to develop products and advance technological capabilities in both the bus segment and the light commercial vehicle (LCV) segment to strengthen Switch Mobility.
Agarwal confirmed that the board of directors of Ashok Leyland has already approved a capital investment of 1,200 million rupees in Optare, the parent company of Switch UK and Switch India. This investment will be made in various stages over the next three to six months.
Despite actively seeking external investments, Ashok Leyland is confident in its ability to independently finance the growth of Switch Mobility. The company’s strong balance sheet provides assurance that funding will not be a problem.
Frequently Asked Questions:
Q: What is Switch Mobility?
A: Switch Mobility is the electric vehicle division of Ashok Leyland.
Q: Why is Ashok Leyland seeking external investments for Switch Mobility?
A: Ashok Leyland is seeking the right strategic partner to support Switch Mobility and ensure a favorable valuation.
Q: Will Ashok Leyland invest independently if a partner is not found?
A: Yes, Ashok Leyland is willing to invest on its own to support the growth of Switch Mobility.
Q: Has Ashok Leyland approved a capital investment for Switch UK and Switch India?
A: Yes, the board of directors of Ashok Leyland has approved a capital investment of 1,200 million rupees in Optare, the parent company of Switch UK and Switch India.