Ashok Leyland electric mobility arm raises USD 18 million from US firm Dana Inc.
NEW DELHI: Two days after committing a $200 million investment, Ashok Leyland’s electric mobility arm Switch Mobility on Friday announced raising $18 mn from Dana Incorporated (Dana), US-based manufacturer of drivetrain and e-propulsion systems.
Following the announcement, shares of Ashok Leyland (AL) surged as much as 10% to Rs 137 on the BSE in Friday’s early deals. It closed 6% higher at Rs 130.80.
Under the agreement, Dana will acquire a 1% stake in Switch and be the preferred supplier of electric drivetrain components for the company’s e-bus and EV commercial vehicle offering - including e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling.
Dheeraj Hinduja, Chairman of Switch Mobility, said that the company has plans to lead zero-carbon mobility globally through positioning innovative products and solutions with best in class total cost of ownership. “I believe the partnership with Dana will accelerate the process, building on our strong relationship of many years,” said Hinduja.
Switch Mobility combines the electrical commercial vehicle operations of Ashok Leyland in India and Optare in the UK. On Wednesday, AL had announced that it would invest up to $200 million (nearly Rs 1,500 crore) in the next few years to launch new products and expand its presence.