Hinduja Group flagship Ashok Leyland is in discussion’s advanced stage with investors for its electric vehicle business. The delay was primarily to ensure that the company had the ‘right partner’ to back its growth plans, as per Deccan Herald.
The city-headquartered company of the Hinduja Group is planning to raise about $200-$250 million to support its EV arm, Switch Mobility.
Ashok Leyland executive chairman Dheeraj Hinduja said there had been an EV slowdown globally as many people raised money and were unable to deliver as he explained the reasons for the delay in finding the right partner.
“We (Switch Mobility) are in a very different position because we have a number of products operating in India, and the United Kingdom. The main reason why we have been delayed in fundraise is because we really want to make sure that we get the right partner who supports the business plan and we get the correct valuation as well,” Hinduja told PTI in a brief interaction.
To a question about a possible time frame to rope in the ‘investor,’ he answered the company is in discussions with “many potential investors,” and some of the discussions were in “the advanced stage.”
“At the same time, the discussions can tend to take longer or it might conclude sooner. I would not like to put a timeline against this,” said Hinduja.
When asked whether it was affecting Switch Mobility’s growth plan, Hinduja replied, “From Switch (Mobility) perspective, it is not affecting the company because the developments of the products are carrying on. It has good support from Ashok Leyland and so we do not have to rush into it (to identify the right investor).”
Switch Mobility business in the Middle East
In addition, he stated that the company was planning to launch EVs under the Switch Mobility business in the Middle East after operating in the European region.
“We are launching in the Middle East, that is from the Switch (Mobility) perspective. They will be looking at certain opportunities for electric buses in the Middle East,” he said.
When asked whether the launch of e-buses in the Middle East would occur this year, Hinduja answered, “it may happen in 2023.”
“In the electric vehicle (business), it is always a gradual start and it (launch) is not in huge volumes. Introduction and testing of the products become very important and critical,” said Hinduja.
Product portfolio expansion
Hinduja stated the company would also unveil its electric version of the ‘Dost‘ and ‘Bada Dost‘ range of light commercial vehicles next year.
“We are looking at the launch of electric Dost and Bada Dost in the middle of 2023 for the domestic market,” he said.
Switch Mobility has been successful as an EV manufacturer in India and the UK. Its product range includes the double-decker bus.
Notably, the company planned to launch a new 12-meter bus, E1, to be introduced next year for the European market.
