The first unit -- Switch Mobility Automotive Ltd -- is being formed to carry on the electric vehicle strategy in India and forms part of its global entity.
The second subsidiary -- OHM Global Mobility Pvt Ltd -- will focus on providing mobility as a service offering, it said.
Switch Mobility Automotive Ltd brings together the company's capabilities both from Optare UK and Ashok Leyland's EV Division, it noted.
"Switch Mobility Automotive Ltd will help us fulfil our aspiration of zero carbon emission transportation.
"With a strong presence and proven expertise in the commercial vehicle market in India and the experience of operating a large number of electric vehicles successfully in India and the UK, we see huge opportunities for growth through Switch's expansion in Indian and global markets," Ashok Leyland Chairman Dheeraj Hinduja said.
Ashok Leyland MD and CEO Vipin Sondhi said creating Switch Mobility and OHM Global would give the company the ability to drive the sustainability agenda which Ashok Leyland is passionate about.