1 min read.Updated: 30 Jul 2021, 01:39 PM ISTLivemint
Ashok Leyland share price surged as much as 10% to ₹137 per share on the BSE in Friday's early deals
Ashok Leyland's arm, Switch Mobility, the Electrified Commercial Vehicles company on Friday announced a strategic agreement with Dana, to make a minority investment in Switch. Shares of Ashok Leyland surged as much as 10% to ₹137 per share on the BSE in Friday's early deals.
Under the terms of the agreement, Dana will make a strategic investment in Switch Mobility and will also be a preferred supplier of electric drivetrain components for the company’s e-bus and EV commercial vehicle offering – including e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling.
''Switch Mobility Ltd, the Electrified Commercial Vehicles company and subsidiary of Ashok Leyland Ltd, Indian flagship of the Hinduja Group and a leading company vehicle manufacturer, today announced a strategic agreement with Dana Incorporated (Dana), the global leader in drivetrain and e-propulsion systems, to make a minority investment in Switch,'' the vehicle manufacturer said in an exchange filing.
Dheeraj Hinduja, Chairman of Switch Mobility, commented: “Dana has a long-standing relationship with Ashok Leyland. This now extends to Switch Mobility and we are happy to have Dana invest in the company. With this agreement Dana not only becomes an important supplier to Switch but will also invest USD 18 mn in the company, representing an approximate 1% stake. The investment exemplifies the confidence placed by Dana in Switch and will help to strengthen the relationship further.''
Switch Mobility combines the electrical commercial vehicle operations of Ashok Leyland in India and Optare in UK to secure a leading global position in net zero carbon buses and light commercial vehicles, the company said.
Meanwhile, Switch Mobility is planning production of a 'global' electric van around 2024, joining a growing field of companies racing to bring zero-emission last-mile delivery vehicles to market.
The vans will be for sale in developed markets like North America, Europe and Japan, and be produced in Europe, relying on Ashok Leyland's low-cost Indian supply base, Switch chief executive Andy Palmer had recently told news agency Reuters. The company also has lower-cost electric vans that will go on sale in emerging markets such as India later this year.