Ashok Leyland’s Executive Chairman, Dheeraj Hinduja, has said there is a positive shift in the electric bus market, noting that the company has witnessed more sustainable and reasonable bidding rates for electric bus tenders. This improvement marks a positive development for the industry, encouraging a healthier competitive landscape in contrast to previous periods of aggressive underbidding.

“Government initiatives like the PM eBus Seva scheme, which has announced an additional 10,000 to 14,000 EV buses, demonstrate continued support for the electric bus segment, and we are progressing with our participation,” Hinduja told businessline.

He expressed confidence that these initiatives are helping establish a more stable and predictable framework for procuring electric vehicles, which will benefit the sector’s long-term growth.

Although the framework for a strong payment security mechanism is still taking shape and hasn’t yet been fully implemented, Hinduja noted that bidding rates are becoming more reasonable. “In the past, the intense competition in tenders led us to hold back on some bids, as we only engage in contracts where we are confident of achieving profitability,” he explained.

He stressed that Ashok Leyland’s strategy revolves around financial prudence. The company is committed to avoiding overly aggressive bids that may not guarantee long-term profitability, focusing instead on sustainable growth and creating value in the emerging electric vehicle market.

Switch Mobility, Ashok Leyland’s electric vehicle arm, currently holds an order backlog of about 2,000 e-buses, which are expected to be delivered over the next 12 to 15 months.

Regarding further investments in the EV business, Hinduja mentioned that the company had invested around ₹300 crore in OHM India, AL’s E-MaaS (electric mobility as a service) subsidiary, a few months ago. “If demand for volumes increases, we are ready to make further investments. Ashok Leyland’s robust financial position, with a debt-equity ratio of just 0.05%, enables us to make such investments without impacting our overall financial stability or our EBITDA margin targets,” he added.

In addition, the company is heavily investing in research and development for electric vehicle technology, aiming to build expertise comparable to its legacy in engine development.

Hinduja explained that the EV Centre of Excellence, focused on key technologies like batteries and motors, is receiving significant resource allocation, not only for capital expenditure but also for building a specialized technical workforce in the electric vehicle domain.

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