Switch Mobility, the electric vehicle arm of Chennai-based Ashok Leyland, will supply 500 units of the mini electric truck IeV4 to fleet operator Magenta Mobility. This mini truck is part of the first product planning cycle. CEO Mahesh Babu told Swaraj multiple new products are in the pipeline that would help widen the range in trucks and buses.
What is the orderbook for buses and LCV?
We have an order of 1,500 electric buses. We signed an agreement with Magenta for 500 vehicles to be delivered this year and we have signed another order for 2,500 vehicles with Moeving. We are engaging with multiple players for trials and we are sure of becoming a prominent player in this segment.
How large is the production capacity of Switch?
We can do 3,000 vehicles per year right now. We can scale that up to 10,000 or 15,000 depending on market demand. We are expecting the market to be 6,000 units and we should be doing two-thirds of that. In a couple of months, we will roll out the IeV 3 which will bring in additional volumes. These vehicles are made on the same line as the Dost.
Is there a higher tonnage vehicle in the pipeline?
We are working on a 7.5 tonne truck which is still in the feasibility stage. We will have to work on the product, customer and ecosystem. Our intention is to roll it out within three years.
How do you see the EV penetration in the commercial vehicle segment?
Below the 7.5 tonne category, we are expecting a penetration of close to 8-10% in 3-5 years for the industry. That will give us a 40,000-60,000 volume depending on how the growth happens.
How has the capex of Rs 1,200 crore been invested?
The investment announced last year of Rs 1,200 crore has helped us roll out the IeV 4 and IeV 3. We are also talking about a new ultra-low floor bus launch for Delhi in the coming months. We are also looking at the architecture of platforms capable of exports.
Do you need further investment?
We will need more investment depending on what products get approved. The second cycle of product planning has already started. We will be a full-range player up to 7.5-tonne in Switch and above that within the group. The buses we are talking about are 13-seater to 65-seater over a period of 5-8 years.
Is the company looking for external investment?
Right now we are not looking at investment from outside. Our chairman has said that whatever has been invested is sufficient for us to take care of this planning cycle. We have grown 10 times already and we aspire to grow at least 3-4 times in the coming years.
Has Switch started sales of the electric LCV to retail buyers?
We have started delivering the IeV mostly to fleet buyers. We are not selling the vehicle to buyers who want to buy 1-2 units but to buyers who understand this better along with the ecosystem. We started delivery in April.
How are you planning the rollout of the eLCV?
We have activated 9 dealerships last month. We are adding five more this month. Every month we are adding 5-6 dealerships and 10-12 outlets. By year-end, we should have more than 100 dealerships.
BEST scrapped the 700 double-decker buses contract. Will Switch participate if it comes up for retendering?
That tender was won by one of our competitors. We will be happy to participate if it comes back for retendering, that’s what we are saying to BEST.
