Ashok Leyland's stock jumped 7% to Rs 124.80 during morning trade on the BSE after the commercial vehicle manufacturer announced the formation of two new subsidiaries as part of its plans to strengthen green transportation solutions.
The stock was 6.25% higher at Rs 124.05 at 12.23 p.m on BSE. It touched an ibtra-day high of Rs 124.80 during the trade. The stock quoted a 52-week high of Rs 138.85 and a 52-week low of 37.35.
Ashok Leyland announced its global expansion plans into India and the creation of two subsidiary companies through its subsidiary Switch Mobility, a U.K.-based producer of electric buses and electric vans.
Switch Mobility Automotive Ltd, the first, is being formed to carry on the company's global EV strategy in India. The second company is OHM Global Mobility Private Ltd, which will provide Mobility as a Service.
Switch Mobility Automotive Ltd combines Ashok Leyland's Optare UK and EV Division capabilities. OHM Global Mobility Private Ltd is a solutions company that is currently piloting in India with big plans to roll out Mobility as a Service (eMaaS) worldwide. Switch and OHM will work together to provide a net carbon zero emission solution for India's burgeoning EV urban buses and light commercial vehicles (LCVs).
Mr. Vipin Sondhi, MD & CEO, Ashok Leyland Ltd commenting on the announcement, said, "Creating Switch Mobility Automotive Ltd India and OHM Global Mobility Private Ltd will give us the ability to drive the Sustainability agenda which Ashok Leyland is passionate about. It will combine our consumer centric approach with the expertise in technology that the new entities will bring to the table"
Commenting on OHM Global Mobility Private Ltd, Dr Andrew Palmer, Vice Chairman, Switch Mobility Ltd, said, "Through OHM Global Mobility Private Ltd, we believe we can accelerate the transition to net zero carbon mobility in buses and vans. OHM Global Mobility's pioneering offering is not only extremely comprehensive in India, but is also world-leading and will provide a robust model of business that can be leveraged by Switch in all its markets".
Ashok Leyland, the Hinduja Group's flagship, is India's second-largest commercial vehicle manufacturer, the fourth-largest bus manufacturer, and the seventeenth-largest truck manufacturer. Headquartered in Chennai, the company has nine manufacturing plants around the world: seven in India, one in Ras al Khaimah (UAE), and one in Leeds, United Kingdom.