18 Sep 2024
Ashok Leyland's Switch Mobility Listing Plans and EV Strategy
The 64th Annual Session of the Society of Indian Mobile and Manufacturers was held on 10 September at the Durbar Hall in the Hotel Taj Palace in New Delhi. Mr Shenu Aggarwal, CEO of Ashok Leyland, highlighted the prospects of Switch Mobility Listing and the growth of the commercial vehicle industry.
Switch Mobility and Profitability Focus
Mr. Aggarwal emphasized the need to improve profitability for Switch Mobility, Ashok Leyland’s EV subsidiary. He announced plans to list the EV subsidiaries, with a strong focus on enhancing profitability and advancing technology. He stated, “We will look into listing the companies as well.”
Addressing Switch's prospects Mr Aggarwal said, “We have already announced that Ashok Leyland wants to be a net-zero company by 2048.” He added, "That is the year we will turn 100 years old.”
Electric Vehicles and Technological Innovations
The company is making significant upgrades in the electric vehicle (EV) sector. City buses and light commercial vehicles (LCVs) are set to adopt EVs. It reflects Ashok Leyland’s commitment to sustainable transportation.
In this context, Mr Shenu Aggarwal, the Managing Director and CEO of Ashok Leyland, said, “I think when it comes to city buses and when it comes to light commercial vehicle, I think the roadmap is quite clear that these two segments are going to go to the electrification route, which is why we create “Switch” so that it can focus on these two segments where the EV adoption would be much faster.”
Additionally, the company is exploring various technology options for heavy-duty trucks. This includes the consideration of hydrogen fuel for medium and heavy commercial vehicles (MHCVs).
Future Growth and Industry Outlook
Ashok Leyland aims to outpace the industry average in growth. Mr Aggarwal expressed strong confidence in the company’s performance for the second half of the fiscal year, expecting growth across all segments in the next few years.
He states that, “based on recent IKRA report, whether it is heavy duty trucks or whether it is light commercial vehicles or buses, ofcourse, I think all segments would show a positive growth.”
Scrappage Policy and Discounts
Ashok Leyland is also proactive in supporting the government’s scrappage policy. The company is willing to offer more than the current 3% discount on CVs for scrappage. They plan to open 2-3 scrappage centres under a franchise model, with the first centre likely to be located in the southern part of India. The exact locations are yet to be decided.
Ashok Leyland is poised for significant growth and innovation in the coming years. With a strong focus on electric vehicles, technological advancements, and profitability, the company is well-positioned to lead the commercial vehicle industry. Mr. Aggarwal’s optimism and strategic vision reflect Ashok Leyland’s commitment to sustainable growth and industry leadership.
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