Search for 'right partner' delays Ashok Leyland's EV biz plan
The company is planning to raise $200-250 mn to support its electric vehicles (EV) arm - Switch Mobility
Chennai: Hinduja Group flagship Ashok Leyland is in advanced stage of discussions with investors for its electric vehicle business and the delay was largely to ensure that the company has the 'right partner' to support its growth plans.
The city-headquartered company of the Hinduja Group is planning to raise around $200-250 million to support its electric vehicles (EV) arm - Switch Mobility.
Explaining the reasons for the delay in finding the right partner, Ashok Leyland executive chairman Dheeraj Hinduja said there has been a slowdown globally on EVs as a lot of people raised money and were not able to deliver.
"We (Switch Mobility) are in a very different position because we have a number of products operating in India, the United Kingdom. The main reason why we have been delayed in fundraise is because we really want to make sure that we get the right partner who supports the business plan and we get the correct valuation as well," he told PTI in an brief interaction.
To a query about a possible time frame to rope in the 'investor', he said the company has been in discussion with 'many potential' investors and some of the discussions were in 'advanced stage'.
"At the same time, the discussions can tend to take longer or it might conclude sooner. I would not like to put a timeline against this," he said.
Asked whether it was affecting the growth plan for Switch Mobility, Hinduja replied in the negative saying, "From Switch (Mobility) perspective, it is not affecting the company because the developments of the products are carrying on. It has good support from Ashok Leyland and so we do not have to rush into it (to identify the right investor)."
To another query, Hinduja said the company was planning to launch electric vehicles under Switch Mobility business in the Middle East after operating in the European region.
"We are launching in the Middle East, that is from the Switch (Mobility) perspective. They will be looking at certain opportunities for electric buses in the Middle East," he said.
