Ashok Leyland, one of the country’s largest commercial vehicle manufacturers is investing significantly in new technologies and alternate fuel platforms.
Responding to a query by Financial Express Online, Dheeraj Hinduja, Executive Chairman, Ashok Leyland stated that “looking at the global experience, diesel is not going to completely disappear, there will be a good share of alternate fuel in commercial vehicle segment.”
The company has showcased its range of electric LCVs for which it has signed MoUs with customers for delivering around 12,000-13,000 units. He states “that so far penetration of LCV is limited. We will be launching our products very shortly. From a B2B perspective, the market is very much there, but for the retail owners there is still concerns around the charging infrastructure. But with Corporates focus on end-to-end agenda and net zero impact we expect the e-LCV is on the cusp of taking off. In the electric bus segment too we have many new tenders coming, not only from the Central government but also various state governments.”
In Q3 FY2024, Ashok Leyland has already invested Rs 662 crore in Switch/Optare, this is part of its earlier commitment of infusing Rs 1,200 crore. The remaining funds are expected to be invested in the coming months in one or more tranches.
“We have already invested close to Rs 950 crore in Switch and OHM (e-mobility as a service provider). Going forward with the targets we have put up, we will be able to generate sufficient cash. The target is to become debt-free and cash surplus,” added Gopal Mahadevan, Whole-time Director & CFO.
The CV maker says that while it has been working on new technologies, the focus is on maturing them and the ecosystem around the technologies.
“That’s why we are undertaking market trials for our products before introducing them at scale. On the bus side and LCV side electric will take a prominent share, when it comes to mid-mile electric will be very dominant. In the long-haul it will be electric or hydrogen, it is not just about technology but also the ecosystem as well,” said Shenu Agarwal, MD & CEO, Ashok Leyland.
Interestingly, it will launch a range of new products including – Switch EiV12 – ultra low entry e-bus; Switch EiV7 e-bus targeted for urban commuting, and Switch e1 LHD for the European market.
“We are close to delivering a 55-tonne electric tractor trailer in few weeks or months. We are not losing focus on diesel vehicles, looking at sub-2-tonne products to address whitespace in the works too,” reveals Agarwal.
