After regaining the Number 1 position in the bus segment, Ashok Leyland will be on a launch spree in FY25 across segments and powertrains. Low-floor and standard electric buses, mini electric trucks, a new platform, and new fuel options are some of the products and technology the company is working on, executive chairman Dheeraj Hinduja told Swaraj Baggonkar during an interview. Excerpts:
How many launches can the market expect from Ashok Leyland in FY25?
There will literally be one launch every other month in the light commercial vehicle (LCV) segment. We will also be launching a number of products in the medium and heavy segment, both in truck and bus. So, we will have a number of new launches every quarter.
Has the Rs 1,200-crore infusion into Switch Mobility started to happen?
The funds have already been given to Switch and they are utilising that for further development of new products. We have put Rs 300 crore into OHM, though we have not considered any further capital infusion immediately.
For how many years will this infusion take care of Switch’s needs?
What is critical for Switch as a startup company is that they need to increasingly roll out a number of products. We already have the 12-metre and the 9-metre bus, and a new 12-metre low-floor bus is coming. LCV IeV 4 has been launched and IeV 3 will be launched in the next 3-4 months.
What more products are you looking at from Switch?
The E1 bus, which is for the European and Middle Eastern (West Asian) markets, will happen in the next 3 months. We are also looking at a new platform for a 9-metre as well. If and when Switch requires additional funding – we are nearly at zero debt level – Ashok Leyland can easily support any additional request.
Are you in talks with any investors currently?
No, we are not.
Please share something on the profitability outlook for Switch Mobility.
The important thing is we have a number of tenders that we have won in India and the products are available. So, as we continue to grow, that will change the financial position of the company.
What is the growth outlook for Ashok Leyland and the industry for the year?
Initially, the expectation of many agencies and the industry was that the first quarter may be a slow one due to the elections, but April has, in fact, seen a growth of 10% over last year. If it continues like this, we will have another promising year. These are still early days, but the outlook is looking positive.
What is your current plant utilisation level?
Our capacity utilisation is close to 75-78%. So, capacity is definitely not a concern.
