Ashok Leyland’s electric vehicle arm Switch Mobility is in talks with financial investors to raise about $300 million–$200 million for capital expenditure needs and $100 million for Switch subsidiary Ohm Global Mobility, a top company executive said.
“We are looking to raise around $200 million for Switch, which will be used in improving products and capacity. In Ohm, the $100 million will be used to acquire new businesses,” said Mahesh Babu, Chief Operating Officer at Switch Mobility. Ohm Global Mobility looks into eMaaS (e-mobility as a service) and will look at the operational side, including maintenance, installation of charging points at depots and other on-ground work for Switch buses. Switch as a whole is going to invest $200-300 million over the next five years, he added. The company was reportedly planning to invest Rs 1,000 crore in a Switch-dedicated facility in South India.
Switch on Tuesday launched its next-generation electric bus platform ‘Switch EiV 12’ for the Indian market. It will be available in two variants–EiV 12 low-floor and EiV 12 standard. The firm currently has an order book for over 600 buses. The EiV platform (Electric intelligent Vehicle) includes telematics and connectivity through Switch iON. It enables remote, real-time diagnostics and monitoring services, as well as digital battery management tools. The EV architecture of the EiV platform was recently launched on the European Switch e1 bus.
“Our aspiration is to make electric products more accessible in India, UK, Europe and many Global markets, contributing significantly to the rapidly growing zero-carbon mobility. With a strong heritage and proven expertise of the Hinduja group and Ashok Leyland in the commercial vehicle market, we are confident that through more such offerings of electric buses and soon to be launched electric light vehicles, we will accelerate our vision to be at the forefront in this evolving market,” said Dheeraj Hinduja, Chairman, Switch Mobility.
Babu added that Switch, which had only 60 buses when the company was formed in 2021, now has confirmed orders for 600 buses. The government is reportedly planning for a mega tender of 50,000 electric buses. Switch said the company is betting big on upcoming tenders by the government.
“The segment is going to see huge potential for growth in the next few years. I strongly believe that this market will grow 10x in the next 2-3 years. We will easily reach 20,000-plus buses a year in 3-5 years’ time,” Babu said.
As part of the production-linked incentive scheme, Ashok Leyland and Switch are jointly planning to invest over Rs 2,000 crore. The company was one among the selected applicants under the initiative to promote local manufacturing by automotive industry players.