Ashok Leyland has made an additional investment of ₹537 crore in its electric vehicle subsidiary, Switch Mobility.

Ashok Leyland has made a significant investment of 536.73 crore in Optare Plc, UK, which serves as the holding company for its electric vehicle (EV) ventures, namely Switch Mobility Ltd, U.K., and Switch Mobility Automotive Ltd. This investment, comprising equity shares in the second tranche, has resulted in an increase in Ashok Leyland's ownership in Optare Plc from 92.19 per cent to 92.59 per cent, as per the company's official statement.

Previously, in December 2023, Ashok Leyland had injected approximately 662.5 crore into Optare Plc through equity shares in the first tranche. This move reflects the company's commitment to bolstering its presence in the EV sector, with Switch Mobility being a key player in this endeavor.

The company's board has sanctioned a plan to infuse a total of 1,200 crore into Switch Mobility as equity, to be executed through its holding entity, Optare Plc, UK, across multiple tranches. This strategic decision underscores Ashok Leyland's strategic vision to capitalize on the burgeoning demand for electric vehicles globally.

Despite a slight dip in Optare Plc's consolidated revenue, which amounted to 230 crore in FY23 compared to 244 crore in FY22 and 292 crore in FY21, the company remains focused on its long-term growth trajectory. The ongoing investments reaffirm Ashok Leyland's confidence in the potential of its EV ventures and its commitment to leveraging Optare Plc's capabilities to capitalize on emerging opportunities in the electric mobility market.

By consolidating its position in Optare Plc and infusing substantial capital into Switch Mobility, Ashok Leyland aims to strengthen its foothold in the EV segment, aligning with its broader strategy to transition towards sustainable transportation solutions. These investments are poised to fuel innovation, expand product offerings, and drive growth for Ashok Leyland's EV business in the coming years.