Ashok Leyland issues clarification on speculations over EV truck terminal partnership with Aidrivers

Indian automotive and transport giant, Ashok Leyland Limited, on Friday issued a clarification to the stock exchanges in response to speculation in a section of media over certain business ventures and fluctuations in trading activity.

The firm, known for its commercial, passenger, and defence vehicles, as well as its power solutions, has been in the spotlight recently for a surge in its share prices. A series of positive business outlooks and strategic plans to grow its share in the commercial vehicle market sparked investor interest in the company’s stock. Its shares closed with a gain of 4.48 per cent at Rs 164.4 apiece on NSE on Friday. The OEM’s shares have risen by nearly 8 per cent over the past week long period. 
 
In a filing to the stock exchanges, Ashok Leyland issued a clarification on recent news reports regarding the company's partnership with Aidrivers, aimed at producing autonomous electric terminal trucks. This move, designed to address the need for net-zero emissions within the port industry, has been the source of much speculation.

Ashok Leyland Limited stated, "The Company has communicated its readiness in the aforesaid area, which will enable the prospective customers to take note of and explore their options with the Company."

Despite the buzz, the company was quick to affirm that this venture, while significant, is not deemed a 'material event' as per the Company's Policy on Materiality, framed in line with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). It further stated that the company "has not got any major orders to justify materiality and hence does not warrant a disclosure to the Exchange(s) at present."

The clarification also addressed speculations around the company's trading activities. Responding to whether the company was aware of any undisclosed information that might explain fluctuations in trading, Ashok Leyland denied such claims. It reiterated that it was not aware of any undisclosed information that could explain recent trading activity and stated that the partnership with Aidrivers did not warrant disclosure to the exchanges due to its non-material nature.

The company concluded by stating that the article does not have a material impact on the Company's operations or valuation. This clarification serves as a reaffirmation of the firm's commitment to transparency and regulatory compliance, even as it continues to explore new opportunities and partnerships in the automotive and transport sectors.