The board at its meeting has approved the transfer of its eMaaS business for Rs 65 crore to Ohm Global Mobility Pvt Ltd, India
Automaker Ashok Leyland has said that it has received the approval of its board for the transfer of its electric vehicles (EV) business to its step-down subsidiary Switch Mobility Automotive Ltd, India (SMAL) for Rs 240 crore on a slump sale basis.
The board at its meeting has approved the transfer of its eMaaS (e-mobility as a service) business for Rs 65 crore to Ohm Global Mobility Pvt Ltd, India, a step down subsidiary of Hinduja Automotive Ltd, UK, the promoter of the company, Ashok Leyland said in a regulatory filing.
“The transfer of EV business to Switch India is being undertaken with an aim to integrate the capabilities of Ashok Leyland’s EV business,” the company said, adding it is expected to be completed by March 31, 2022. SMAL has been primarily formed to drive the EV business of the company, it added.
On the other hand, the transfer of eMaaS business to Ohm India is being done with an aim to integrate the capabilities of the company’s eMaaS business, it said.
Consequently, the company is now looking for investments in its electric vehicle business, according to a top official.
“We need investment for product development and technology for e-LCVs and e-buses. Switch will have the electric version of the Dost and Bada Dost,” CFO Gopal Mahadevan said.
“The EV initiative is going to be extremely crucial for us. We have seen quite a bit of interest from investors, but we are waiting for the right financial and strategic partners.”
Earlier this year, the Indian auto giant revealed that it will invest up to $200 million in producing electric vehicle through its UK-based subsidary Switch Mobility in the next few years.