Dana Incorporated, a US-based drivetrain and e-propulsion systems company, will pick a minority stake (around 1%) in Switch Mobility, the EV subsidiary of Ashok Leyland, for $18 million. Switch Mobility on Friday announced that a strategic agreement with Dana Incorporated has been inked for the latter to make a strategic investment in the company.
Dana 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 said in a statement.
Switch Mobility chairman Dheeraj Hinduja said: “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 $ 18 million 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.”
Unveiling the roadmap for the EV subsidiary, ALL had recently said the arm will have funding coming in from financial and strategic investors apart from the initial capital infusion from ALL. The ALL management had engaged with key investors from India and London. Hinduja had said Switch needs to create its own capital structure, both equity and debt.
Switch Mobility combines the electrical commercial vehicle operations of Ashok Leyland in India and Optare in the UK.