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Ashok Leyland To Remain Majority Shareholder In Switch Mobility

The Electric Vehicle arm of Ashok Leyland plans to raise funds significantly above its valuation, post which the majority stake would still remain with Leyland

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Ashok Leyland EV arm at majority

The electric vehicle arm of Ashok Leyland, Switch Mobility Ltd, has planned to raise 200-300 million dollars at a valuation that is a significant increase from 1.6 billion dollars where it had acquired a small stake from Dana Corp. Leyland's executive chairman Dheeraj Hinduja said that the majority of the Switch would be left with Leyland even in the long run post the fundraising rounds and would reduce its stake to less than 51%. 

Construction of a new EV plant in Spain has started and Andy Palmer, vice president said that the company will increase and spend $100 million on the new facility. Commenting upon how a manufacturing base in Europe fit into Switch's grow plans Hinduja said, there was a need to create a larger company that could provide vehicles for India and developed markets. Our studies highlighted that there was going to be a substantial increase in the light vehicles, vans and buses and hence we needed to enter the European market and focused on Valladolid in Spain. 

Palmer further added that we wanted to enter the market into deeper operations with two product lines. Since Europe is projected to be the largest EV market in the world, we have to start producing in Europe to meet the demands of customers and make competition strong. 

With respect to India, every state government is placing order for electric buses and its tenders in large quantities. We do witness lot of traction for large corporates who want electric buses to be part of carbon commitments. Plans related to EV in India is very strong and Leyland is planning to work on a new range of electric buses in nine meter and 12 meter segment. 

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ashok leyland ltd shareholders electric vehicles mobility