Switch Mobility Chief Executive Officer Mahesh Babu with the newly unveiled IeV4 vehicle in Chennai.
| Photo Credit: N. Anand
Switch Mobility, the electric vehicle arm of Ashok Leyland, is planning to produce electric Light Commercial Vehicles (LCVs) with Gross Vehicle Weight under two tonnes and 4 to 7.5 tonnes within the next five years, said its CEO Mahesh Babu.
“We have started with 2.5 tonnes GVW and can go up to 7.5 tonnes GVW from 4 tonnes,” Mr. Babu said in an interview. “This is the category where there is a huge demand. We will also start producing EVs in the sub-two tonnes category. We are working on the business case,” he added.
While Switch will manufacture e-buses and e-SCVs, Ashok Leyland will continue to make diesel engine vehicles such as buses and LCVs and M&HCVs.
Mr. Babu also said that Switch would be rolling out two new vehicles every year for the next five years. On the anvil are the rollout of low floor e-buses and E1 for the European market.
Asserting that their market share has grown from 3% to 20% in the last two years, he said by the end of fifth year, Switch would have a compound annual growth rate of 45% for all vehicles put together.
Asked about the funding pattern, he said it would be met through internal accruals and borrowings as well. The parent company has committed to support it for a year by investing ₹1,200 crore and it would be sufficient for the next two years.
“We had many meaningful discussions on the funding. But we did not close the deal because of valuation. The launch of IeVs will further enhance the valuation of Switch. As we go forward, we will create much more value from a valuation perspective and investors base,” said Switch Mobility Executive Chairman Dheeraj Hinduja.
Explaining about the export strategy, Mr. Babu said that Switch has a 10-year presence in the UK. Ashok Leyland has a strong presence in the GCC market. “We will leverage their strength to increase our EV market share.”