Delay in expansion plans as we want right partner for EV business: Ashok Leyland
Explaining the reasons for the delay in finding the right partner, Ashok Leyland executive chairman Dheeraj Hinduja said there has been a slowdown globally on EVs as a lot of people raised money and were not able to deliver.
Hinduja Group flagship Ashok Leyland is in advanced stage of discussions with investors for its electric vehicle business and the delay was largely to ensure that the company has the 'right partner' to support its growth plans.
The city-headquartered company of the Hinduja Group is planning to raise around USD 200-250 million to support its electric vehicles (EV) arm -- Switch Mobility.
Explaining the reasons for the delay in finding the right partner, Ashok Leyland executive chairman Dheeraj Hinduja said there has been a slowdown globally on EVs as a lot of people raised money and were not able to deliver.
"We (Switch Mobility) are in a very different position because we have a number of products operating in India, 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," he told PTI in an brief interaction.
To a query about a possible time frame to rope in the 'investor', he said the company has been in discussion with 'many potential' investors and some of the discussions were in '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," he said.
Asked whether it was affecting the growth plan for Switch Mobility, Hinduja replied in the negative saying, "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)."
To another query, Hinduja said the company was planning to launch electric vehicles under 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.
Also Read: PV wholesales rise 29 pc to 2.91 lakh units in October: SIAM
On whether the launch of electric buses in the Middle East would happen this year, he said 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," he said.
Expanding the product portfolio, Hinduja said the company would also unveil the electric version of its highly popular 'Dost' and 'Bada Dost' range of light commercial vehicles (LCVs) in 2023.
"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 electric vehicle manufacturer in India and the United Kingdom. Its product range includes the double-decker-bus. For the European market, the company has planned to launch a new 12-metre bus, E1, to be introduced in 2023.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
04:10 PM IST