13 Feb 2025
Switch Mobility Raises 1,800+ Orders for Electric Buses, Exports to Mauritius
Ashok Leyland, a top commercial vehicle player, has declared an investment of Rs 700 crore. Ashok Leyland will invest Rs 500 crore in Switch Mobility's holding company Optare PLC and Rs 200 crore in Hinduja Finance. The investment will be made in the fourth quarter of FY25.
Why is Ashok Leyland Making This Investment?
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, explained the reasons for this decision. The company aims to support Switch Mobility's growth and financing requirements. Further, the Rs 200 crore investment in Hinduja Finance will also improve its financial strength.
Switch Mobility’s Growth and Orders
Switch Mobility, the electric mobility business of Ashok Leyland, is also increasing steadily. At the close of Q3 FY25, the company achieved an order book of more than 1,800 electric buses. This covers an export order of 100 buses to Mauritius. Furthermore, Switch Mobility's electric light commercial vehicles (e-LCVs) are finding good takers, and more than 100 units are sold each month.
Earlier Investments in Switch Mobility
Nearly a year ago, Ashok Leyland had approved an equity investment of Rs 1,200 crore into Switch Mobility. During that period, the firm declined to bring in external funds since it had adequate internal resources to aid its growth. This new capital, therefore, will add another milestone to the expansion of the firm.
Ashok Leyland’s Overall Capital Plans
The company is also reviewing its overall capital expenditure plans. While the final budget is not yet confirmed, initial estimates suggest that Ashok Leyland will spend between Rs 800 crore and Rs 1,000 crore in FY25. This investment will help in various expansion projects.
Ashok Leyland continues to focus on the growth of its electric vehicle division and financial arm. With this fresh investment, the company aims to strengthen its position in the market. The rising demand for electric buses and e-LCVs shows that Switch Mobility is on the right track. This investment will ensure that the company can meet its future goals smoothly.
Follow us for Latest Truck Industry Updates -
☞ Facebook - https://bit.ly/TruckFB
☞ Instagram - https://bit.ly/TruckInsta
☞ YouTube - https://bit.ly/TruckYT
