Executive Chairman Dheeraj Hinduja reports that Ashok Leyland optimistic on e-LCVs and has received 10,000 orders

17 Nov 2023 , 10:37 AM

Over two months ago, commercial vehicle manufacturer Ashok Leyland Ltd. introduced its IeV series of electric light commercial vehicles (e-LCVs). According to the top company official, the company is optimistic about the battery-driven light trucks and has already received 10,000 bookings for them.

We plan to introduce our own electric light-duty vehicles (LCVs) during the fourth quarter of current fiscal year. Based on our preliminary conversations, it appears that buyers are eagerly anticipating this (product). Additionally, we have a solid orderbook with over 10,000 cars,’ stated Ashok Leyland Executive Chairman Dheeraj Hinduja to MoneyControl.

The two new e-LCVs were launched in Chennai by Ashok Leyland’s electric vehicle branch, Switch Mobility. According to the firm, IEV3 and 4 were created at a project cost of approximately Rs 100 crore and are specifically designed to offer environmentally friendly solutions for last-mile transportation demands. The products will be constructed at Ashok Leyland’s Hosur site.

The ‘twin brothers,’ or IeV 3 and IeV 4 vehicles, belong to the 2-3.5 tonne commercial vehicle class and are equipped with a 330 V high voltage EV architecture. The vehicles have a cargo body that can expand up to 9.7 feet, and the business previously disclosed that it can handle a container with a capacity of 340 cubic feet.

Hinduja was unequivocal in stating that its ICE-powered LCV market had not been negatively impacted by the surge in sales of electric three-wheelers (E3Ws). According to him, the ‘customer’s own application requirements’ determine how the mobility towards electric vehicles is progressing.

The sales of electric three-wheelers have expanded significantly, leading to a gain in their market share. However, I don’t believe they’ve really taken the place of what’s already in place, particularly in the area (LCV) where we work with Dost and Bada Dost, Hinduja continued.

Hinduja conceded that future demand for its electric buses in European nations may be hampered by the continued instability, global uncertainty, and the energy crisis.

While the Indian government has been quite supportive and has been advancing the green agenda, many European nations—particularly the UK—have postponed the date on which diesel will be phased out. That being said, the quantities are still coming in. There are numerous tenders that are being received. But it moves at a much slower speed,’ Hinduja remarked.

In addition, Ashok Leyland disclosed that its board had approved a Rs. 1,200 crore investment in its electric vehicle division, Switch Mobility, for capital spending, research and development, and meeting operational needs in both India and the UK. Following the required statutory clearances, the money will be pumped in one or more tranches over the course of the upcoming few months.

Hinduja stated, ‘We felt that we needed a partner who would have the long-term vision that we do,’ in response to a question about whether the business would be searching for strategic share dilution. Additionally, we aimed to obtain accurate appraisals. However, the board concluded more than four or five months ago that Ashok Leyland would be better to maintain its growth (via funds infusion).

Hinduja stated that investors will have much more faith in the kinds of products Switch is developing if e-LCVs and E1 e-bus are introduced in the home market and abroad, respectively.

The infusion of Rs 1,200 crore provides additional assurance that Switch (Mobility)’s business plans are solid and headed in the right direction. It perfectly aligns with the long-term expansion of all the alternative fuels for which we were ready in response to Switch’s (the company’s) clientele’s demands. Our future is really bright when you consider Switch’s position in relation to numerous other EV businesses who have collected money and presented extremely ambitious objectives.

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