Bullish on the future of green mobility, Ashok Leyland plans to set up a new manufacturing facility in the country to roll out electric vehicles
CorporatesPress Trust of IndiaUpdated: February 20, 2022 11:19 am IST
Ashok Leyland plans to set up manufacturing facility to roll out electric vehicles in India
New Delhi:
Bullish on the future of green mobility, the Hinduja Group flagship Ashok Leyland plans to set up a new manufacturing facility in the country to roll out electric vehicles, according to a top company official.
The Chennai-based firm has also lined up a ₹ 500 crore investment to develop powertrains based on alternative fuels like CNG, hydrogen and electric for its commercial vehicles range.
The company has already announced a $200 million (nearly ₹ 1,500 crore) investment through its UK-based arm Switch Mobility for electric mobility.
The commercial vehicle company aims to expand its electric vehicle portfolio as well as develop new engines keeping in mind the changing market requirements in the domestic as well as international markets.
“In Spain, we are coming up with a manufacturing facility and R&D centre and there are plans to grow this over the next few years. In India, we will be optimising the facilities that are available with Ashok Leyland.
“But I’m sure very soon we will require an independent facility as well. And that is something that is being looked at by the management team,” Ashok Leyland Executive Chairman Dheeraj Hinduja said in an interaction.
Asked if the company has set some timeframe for the new plant, he noted that a lot will depend on the volume growth of electric vehicles.
“We are looking at all the opportunities and options available, so that capacity never becomes an issue if the market requires more products. So, I wouldn’t put a date to it right now. But we are keeping all our alternatives and options open,” Mr Hinduja stated.
He noted that at the moment, the company feels quite comfortable regarding the production capacity for the next two years.
“We feel quite comfortable that for the immediate, let’s say, 24 months or so. Ashok Leyland would be able to provide the electric products that are needed for Switch,” Mr Hinduja noted.
On the company’s EV product plans, he said Dost and Bada Dost models would be utilised to cater to the domestic and the SAARC markets.