Ashok Leyland To Invest In EVs About $200 M
- ByAyushi Ray | July 29, 2021
Hinduja group flagship firm Ashok Leyland to invest in EVs about $200 M, through its UK-based arm Switch Mobility in the next few years, according to company officials. Switch Mobility, which will play in the commercial e-mobility space globally for the group through next-generation electric bus and light commercial vehicles, will launch an electric light commercial vehicle (eLCV) later this year in India. Ashok Leyland is banking on Switch Mobility to play a crucial role to achieve its ambition of being in the top ten players globally in the commercial vehicles segment through the latter’s electric commercial vehicles, which would allow it to serve markets developed like the US, Europe, and Japan. “We feel very confident that we have developed products that have been accepted by the market…With 280 vehicles already on the road, we feel that Switch today will allow Ashok leyland to fulfill its long term vision of being in the global top 10 (commercial vehicles player,” Ashok Leyland and Switch Mobility Chairman Dheeraj Hinduja said.
Hinduja had previously said that Ashok Leyland had constraints as its product range for international markets was limited and was unable to enter markets like the US, Europe, and Far East Asian markets like Japan. “With Switch, we will be able to enter markets, which Ashok Leyland so far has not been able to do,” Hinduja added. When asked about investments for the EV journey, Ashok Leyland CFO Gopal Mahadevan said, “From our perspective, if I were to put a number, I would say that we would possibly invest about 150 to 200 million (dollars) over the next few years.” As the company moves forward, the focus of the investment would be on new vehicles, prototypes, technologies, and tie ups, among others. “And then, as this business scales up, we will invest further into the manufacturing facility,” he said. A total of over $130 million has already been invested in Switch Mobility by the group. Andrew Palmer, Executive Vice Chairman and CEO, Switch Mobility, UK, elaborated on their future plans ,saying , the eLCV “is the imminent launch of a value proposition for India and also for other emerging markets”.
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