Switch Mobility eyes West Asia market, may raise up to $250m soon | The Financial Express

Switch Mobility eyes West Asia market, may raise up to $250m soon

He said Switch plans to launch products in the LCV segment such as Dost and Bada Dost by the middle of the next year.

Switch Mobility eyes West Asia market, may raise up to $250m soon
“Currently, it is focused on the UK and India markets. It has displayed electric buses in Europe, which is a big market. We are getting interest from the Middle East (West Asia) market as well. After Europe, we will focus on that market,” he said.

Switch Mobility, the electric vehicle subsidiary of Ashok Leyland, has set its sights on the West Asia market for its expansion plans. Besides, the company is in talks with prospective strategic investors for a fundraise of $200-250 million.

Dheeraj Hinduja, executive chairman, Ashok Leyland, told select mediapersons on Friday that Switch Mobility plans to roll out products in more geographies. “Currently, it is focused on the UK and India markets. It has displayed electric buses in Europe, which is a big market. We are getting interest from the Middle East (West Asia) market as well. After Europe, we will focus on that market,” he said.

Hinduja said they are in talks with several investors to raise $200-$250 million and a deal is likely to be announced soon. “Though, the culmination of the deal is taking a bit more time than expected, we want to rope in the right strategic investor, hence the delay,” he said. The dilution due to fresh infusion of capital will not be more than 15%.

Also Read: Dr Andy Palmer steps down as Switch Mobility CEO, Mahesh Babu takes charge

He said Switch plans to launch products in the LCV segment such as Dost and Bada Dost by the middle of the next year.

Switch Mobility may go in for collaborations for charging infrastructure and battery-related segments. “We are not open to collaborations on the product side, as we have already developed number of products which will be launched soon,” Hinduja said, in response to questions on possible tie-ups with other OEMs on products.

Ashok Leyland back in black with Rs 199 cr profit in Q2

Ashok Leyland reported profit after tax (PAT) of Rs 199 crore for the second quarter of FY23, compared with a loss of Rs 83 crore in the same period last year. Revenue for the quarter stood at Rs 8,266 crore as compared to Rs 4,458 crore a year ago.

Domestic M& HCV volumes at 25,475 units grew 113% over the same period last year (11,988 units), which is more than double the industry growth. This helped the company achieve market share gains of 9.6 % in the quarter, it said.

On the outlook for Ashok Leyland, executive chairman Dheeraj Hinduja said demand for buses and trucks looks bright and the company has lined up several launches during the second half of FY23. “We will continue to maintain 30% market share. Currently, the demand for commercial vehicles is on an upward trend. We continue to have robust growth,” he said.

Gopal Mahadevan, director and CFO, said Ashok Leyland is the only company in the space to have gained market share in Q2, reaching a share of 32%. “There are a lot of opportunities in the bus segment and we have a long way to go. Light commercial vehicles are expected to do much better in the second half,” Mahadevan said.

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First published on: 12-11-2022 at 05:00 IST