Leading truck and bus maker Ashok Leyland (AL) is scouting for ‘right investors’ for its electric vehicle arm. The company had earlier indicated that EV business should raise its capital/funds independently either through debt or equity.

“The Switch Mobility Management team is in talks with some investors and the company is looking for right investors — both strategic and financial — as the EV initiative of AL is going to be very, very crucial. We are looking at investors in Switch for the development of new products and technologies for electric buses and LCVs not just for India but also for global markets,” said Gopal Mahadevan, Whole-Time Director & Chief Financial Officer of Ashok Leyland.

In July, Ashok Leyland’s EV arm Switch Mobility attracted $18 million from Dana, the UK-based drivetrain and e-propulsion system supplier.

New CNG launches

Meanwhile, Ashok Leyland plans new CNG vehicle launches in the ICV (intermediate commercial vehicle). Though the company managed to maintain its market share in the medium and heavy truck segment at about 28 per cent in FY21, it lost some share this fiscal. Industry sources say its share dropped to 23.6 per cent in H1 of this fiscal compared to a year-ago period.

The major factors for its market share drop include sudden high growth in the ICV-CNG segment, where Ashok Leyland has limited presence. Also, lower volume growth in its major market — Southern India — in relation to the growth trends in the rest of the country also dented its share.

The share of ICV in overall M&HCV volumes became significantly higher than what Ashok Leyland expected, mainly driven by the e-commerce boom. Also, in the ICV segment, CNG models started growing very fast due to lower cost of operations when compared with diesel vehicles. The company is unable to take advantage of the market shift due to absence of CNG models. Its competitors Tata Motors and VE Commercial Vehicle have a strong CNG line-up.

But, Vipin Sondh, Managing Director & CEO of Ashok Leyland, said it was not a cause for concern as the company would be responding to the market shift with new CNG launches.

Mahadevan said Ashok Leyland would make its presence felt in the ICV-CNG segment by introducingCNG models by Q4 of this fiscal. “CNG impact is a short-term affair and we will catch up in market share with new launches,” he added.

On last mile segment growth, Sondhi said the company gained market share with its Bada Dost, a new pick-up vehicle launched a year ago.

“We are upwards of 20 per cent in the market in the segment we operate — which is 50 per cent of the total market. Bada Dost is complementing Dost and we are gaining in market share,” he added.