NEW DELHI: Facing stiff competition, Hinduja Group flagship company Ashok Leyland (AL) is expanding its presence in the alternative fuel segment. The company said it has aggressive plans for its EV business and that it is in talks with investors to raise funds for its electric vehicle (EV) arm.
“The company is looking for the right investors, both strategic and financial, as our EV initiative is going to be very crucial. We are looking at investors in Switch for the development of new products and technologies for electric buses and light commercial vehicles.
This will not be limited to India but also for global markets,” said Gopal Mahadevan, whole-time director & Chief Financial Officer of Ashok Leyland.
The company board has recently approved transferring of its electric vehicles business to its step-down subsidiary Switch Mobility Automotive Ltd India (SMAL) for `240 crore. In July 2021, Switch had attracted $18 mn from Dana, the UK-based drivetrain and e-propulsion system supplier.
AL is also looking to enter the used vehicle business. In the current fiscal, it has plans to launch two intermediate commercial vehicles (ICV) that would run on CNG and is working on hydrogen-powered CVs.
This aggressive expansion comes at a time when CV sales are showing signs of a revival and the Chennai-based firm is facing competition from Tata Motors and other players such as VECV and M&M.
“We are working very closely on hydrogen-powered CVs. At this point of time, we do not want to talk more about it. We are deeply engaged and a team is currently working on it,” said Ashok Leyland CEO and MD Vipin Sondhi.
CNG models underway
The firm has plans to launch 2 intermediate commercial vehicles models that would run on compressed natural gas.