Ashok Leyland, the Chennai-based commercial vehicle giant, has announced a planned investment of Rs 500 crore in Optare PLC, the holding company of its electric mobility subsidiary, Switch Mobility. This investment is scheduled for the fourth quarter of FY25. Additionally, the company will inject Rs 200 crore into Hinduja Finance to strengthen its capital adequacy.
Dheeraj Hinduja, Executive Chairman of Ashok Leyland, shared these plans during a post-earnings conference call, highlighting that the funding will support Switch Mobility’s expansion and capital expenditure requirements.
This move follows Ashok Leyland’s Rs 1,200 crore equity infusion into Switch Mobility last year. At that time, the company decided against raising external capital, relying instead on internal resources to fuel its growth.
Switch Mobility has secured an order book exceeding 1,800 electric buses as of Q3 FY25, including an export order of 100 buses from Mauritius. Its electric light commercial vehicles (e-LCVs) are also gaining traction, with monthly sales surpassing 100 units.
On the broader capital expenditure front, Ashok Leyland’s management stated that FY25 capex plans are still under evaluation. However, initial projections estimate an investment between Rs 800 crore and Rs 1,000 crore for the fiscal year.
Optare PLC is a UK-based bus manufacturer specializing in the design and production of advanced, lightweight, and energy-efficient buses. With a legacy of innovation in public transport, Optare has been at the forefront of developing low-emission and electric buses, contributing to sustainable urban mobility. The company’s focus on aerodynamic design, fuel efficiency, and reduced operating costs makes its buses a preferred choice for modern public transportation networks. Now integrated into Switch Mobility, Optare continues to drive advancements in electric mobility and smart transportation solutions.
Switch Mobility is a pioneering electric vehicle (EV) manufacturer dedicated to revolutionizing urban mobility through zero-emission commercial vehicles. As the electric mobility arm of Ashok Leyland, Switch Mobility leverages decades of expertise in bus manufacturing to develop cutting-edge electric buses and light commercial vehicles. The company focuses on sustainable, connected, and efficient transportation solutions that help cities transition toward cleaner mobility. With a strong presence in the UK and India, Switch Mobility is accelerating the global shift towards electrification in public and commercial transport.
Ashok Leyland, a flagship company of the Hinduja Group, is one of India’s leading commercial vehicle manufacturers and the fourth-largest bus manufacturer in the world. With a diverse portfolio of trucks, buses, defense vehicles, and power solutions, Ashok Leyland plays a crucial role in shaping India’s transportation landscape. The company is known for its technological innovations, including alternative fuel and electric mobility solutions, ensuring efficient and sustainable transportation. With a strong global footprint and a commitment to green mobility, Ashok Leyland continues to drive progress in the commercial vehicle industry.
