Keen to get external investment for EV arm

New Delhi: Hinduja Group flagship firm Ashok Leyland is keen to get external investments for its electric vehicle arm Switch Mobility but only from ‘the right strategic partner’, and it will not shy away from investing on its own till such an ally is found, according to its Managing Director and CEO Shenu Agarwal.

While Switch India is likely to be cash neutral or cash positive going forward, on an operating level at least, for Switch UK some more investments may be required in FY25, with the European and UK markets still not going that strong, he told analysts. “We are very keen on getting external investments also, but we want to make sure that we have the right strategic partner with us. I mean, we do it at the right valuation. So right now, the focus is to get Switch into a very, very strong mode by developing products, by maturing our technology on both the bus side and the LCV side,” Agarwal said. He was responding to a query on whether the current tough funding environment could delay roping in an external partner for Switch Mobility, which houses the electric vehicles (EV) business of Ashok Leyland. “So, whenever we get a good offer from an external investor, we’ll certainly look at that,” Agarwal said, adding that the Ashok Leyland board has approved an equity investment of Rs 1,200 crore in Optare, which is the holding company for Switch UK and Switch India. “We shall be inducting this equity in one or more tranches over the next three to six months,” he added. Till the time a right partner is found, Agarwal said, “Until then, we won’t shy from investing on our own from the Ashok Leyland side.