Ashok Leyland, the Hinduja Group’s flagship company, is actively seeking external investments for its electric vehicle subsidiary, Switch Mobility. The Managing Director and CEO, Shenu Agarwal, expressed the company’s eagerness to secure the right strategic partner for Switch Mobility, emphasizing the importance of the right valuation in any potential deal.
While Switch India is expected to be financially stable or even positive in the near future, Agarwal highlighted the possibility of requiring additional investments in Switch UK during FY25. The European and UK markets, where Switch UK operates, are currently facing challenges.
Despite the challenging funding environment, Agarwal assured analysts that Ashok Leyland is open to external investments but is focused on ensuring the selection of the right partner. He mentioned the company’s commitment to strengthening Switch Mobility by developing products and advancing technology in both the bus and light commercial vehicle (LCV) segments.
Agarwal acknowledged the approval of a significant equity investment of ₹1,200 crores in Optare, the holding company for Switch UK and Switch India. This investment is set to be infused in one or more tranches over the next three to six months, showcasing the company’s dedication to supporting Switch Mobility’s growth.
Until the ideal external partner is identified, Agarwal assured that Ashok Leyland will not hesitate to invest from its own resources, highlighting the robust financial position of the company. The management remains confident in the strength of Ashok Leyland’s balance sheet to fund Switch Mobility’s future growth.