The Hinduja Group’s flagship company, Ashok Leyland, has indicated that it is interested in obtaining outside funding for Switch Mobility, its electric car subsidiary. The managing director, Shenu Agarwal, stressed how crucial it is to choose the ideal strategic partner for this project.
Agarwal emphasised that although the company welcomes outside investment, it would continue to make independent investments until a right ally is found, as reported by PTI.
Agarwal answered questions regarding the partnership’s potential delay due to the difficult funding environment. He gave the assurance that the business is actively looking for outside investors and will carefully review proposals that fit their valuations and strategic ambitions.
In light of the uncertainty surrounding the European and UK markets, Agarwal said Switch India is anticipated to maintain cash neutrality or perhaps grow in the future. However, further financial outlays may be necessary for Switch UK in FY25 to strengthen its position.
Agarwal stated that the major Rs 1,200 crore equity investment in Optare, the parent company of Switch UK and Switch India, has been authorised by the Ashok Leyland board. Over the next three to six months, the investment will be made in one or more tranches.
Agarwal informed stakeholders that Ashok Leyland’s robust balance sheet permits them to continue investing in the expansion of Switch Mobility without worrying about funding in the interim, till the ideal partner is found.