Switch Mobility is investing Rs 1,000 crore in a plant to produce 10,000 electric buses and 30,000 E-LCV.
Switch Mobility, Ashok Layland’s electric vehicle arm, will invest ₹1,000 crores in an electric vehicle plant in Southern India. The plant is expected to produce 30,000 e-LCV (Light Commercial Vehicles) and 10,000 units of electric buses.
The facility is to help Ashok Layland to cater to the rising demand for electric vehicles. The EV plant will be built in the state of Tamil Nadu, on the outskirts of Chennai.
Completing one year, Switch Mobility has already secured orders for 600 electric buses, with ambitions to create close to a billion dollars in revenue. This will be achieved by selling 5,000 buses or 15,000 small commercial vehicles.– Mahesh Babu, CEO of Switch Mobility, told The Economic Times.
“We have actively participated in tenders of over 7,000 buses. With the plans on the table, we should be able to deliver over 500 buses in FY23, and in the next three to five years, we should be able to grow this number 10-fold. There is a strong momentum in new orders emerging with the CESL and BEST orders. We are also talking to private operators, who are showing interest. The business should deliver healthy growth,” Babu said.
Currently, the buses are being assembled at the company’s Ennore facility. The new EV plant will have an LCV, bus, and battery pack assembly plant under one roof.
Last month, Switch Mobility committed over ₹3,000 crores to the zero-carbon public and commercial transportation and set up a plant in Spain.
Along with its e-mobility-as-a-service unit Ohm Global, the company is in talks with investors to raise funds for its electric vehicles to the tune of $250-300M, which is likely to be finalized within a few weeks.