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The Hinduja Group’s flagship Ashok Leyland is at an advanced stage in discussions with investors about its electric vehicle business. This delay was to make sure that the company has the right partner to help it grow.
The Hinduja Group, a company based in the city of Mumbai, plans to raise $200-250 million for its electric vehicle arm, Switch Mobility.
Dheeraj Hinduja, Ashok Leyland’s executive chairman, explained the reasons behind the delay in finding the right partner. He said that there was a global slowdown in EVs because a lot of people have raised money but were unable to deliver.
Switch Mobility is in a different place because there are a variety of products in India and the United Kingdom. He explained that the main reason the company has been delayed in raising funds is that the company wants to ensure it gets the right partner, who will support the business plan, and get the correct valuation.
Responding to a question about the timeframe for bringing in an investor, he stated that the company had been in discussions with many potential investors and that some of these discussions were still in their advanced stages.
At the exact same time, discussions can take longer or might end sooner. He said that he would not put a time limit on this.
When asked if it was impacting the growth plan of Switch Mobility, Mr. Hinduja said that it wasn’t. He stated, “From Switch Mobility’s perspective, it isn’t affecting the company because there are ongoing product developments. We don’t have to rush (to find the right investor) because it has Ashok Leyland’s good support.
“We will launch in the Middle East, and that is from the Switch Mobility perspective. He said that they will be exploring certain opportunities for electric buses within the Middle East.
He said that the launch of electric buses within the Middle East could happen this year. It is a slow start in the electric vehicle business. The launch is not in large quantities. He said that testing and introduction of products are crucial and very important.
To expand the company’s product range, Mr. Hinduja stated that the company will also introduce the electric version of its popular ‘Dost’ and ‘Bada Dost’ light commercial vehicles in 2023.
Switch Mobility is a successful electric vehicle manufacturer in India as well as the United Kingdom. The company’s product line includes the double-decker bus. The company plans to introduce a new 12-meter bus, E1, in Europe by 2023.