In intra-day trade on Friday, Ashok Leyland shares rose 10% to Rs 137.45 on the BSE on the strength of large volumes after the commercial vehicle (CV) giant announced its electric vehicle (EV) road plan on Wednesday. Hinduja Group Company’s shares was trading around its 52-week high of Rs 138.85, set on February 4, 2021.
Dana Incorporated to invest
Dana Incorporated, a drivetrain and e-propulsion systems firm located in the United States, will invest $18 million in Switch Mobility, Ashok Leyland’s electric vehicle subsidiary. Switch Mobility said on Friday that it has reached an agreement with Dana Incorporated to make a strategic investment in the firm.
Switch stated in a statement that Dana would be a preferred supplier of electric drivetrain components for the company’s e-bus and EV commercial vehicle offerings, including e-axles, gearboxes, motors, inverters, software and controls, and electronics cooling.
About Switch Mobility
Switch Mobility unites Ashok Leyland’s and Optare’s electric commercial vehicle businesses in India and the United Kingdom to establish a worldwide leadership position in net zero carbon buses and light commercial vehicles. Switch delivered the first British-built, pure electric buses to London’s roads in 2014, and has since deployed 280 EVs on the road in existing and developing markets, clocking over 26 million electric miles.
Switch Mobility will be at the forefront of all future e-mobility activities in both the global and domestic markets. So far, Ashok Leyland has spent USD 130 million, with more investments of USD 150-200 million expected in the next 2-3 years, mostly from strategic and financial investors.
Management anticipates a decrease in the share of ICEs in the coming decade, as well as growing adoption of CNG, electric, LNG, and hydrogen-cell-based CVs.
“Dana has a long-standing connection with Ashok Leyland,” Switch Mobility chairman Dheeraj Hinduja said. This now includes Switch Mobility, and we are grateful for Dana’s investment. Dana will not only become a significant supplier to Switch as a result of this deal, but will also invest $ 18 million in the firm, representing a 1% share. Dana’s trust in Switch is exemplified by this investment, which will serve to deepen the partnership even more.”
ALL recently revealed the roadmap for the EV subsidiary, stating that the arm will receive investment from financial and strategic investors in addition to the first cash infusion from ALL. ALL’s management had met with important investors from India and the United Kingdom. Switch, according to Hinduja, has to develop its own financing structure, including both stock and debt.