Ashok Leyland is among the top five gainers on the BSE since the opening bell today. The stock, which had closed yesterday at Rs.125.25, opened ay Rs.127.05 and went on to hit an intraday high at Rs.137.45, just inches away from its 10% UC of the day at Rs.137.75 and not to far from its 52-week high of Rs.138.85.
The market is pretty pleased with the company’s foray into EVs. And in that vein, the company today announced that Switch Mobility, the electric vehicle arm of Ashok Leyland, will form a strategic agreement with US-based automobile parts supplier Dana Incorporated.
Under the terms of the agreement, Dana will make a strategic investment in Switch Mobility and will also be a preferred supplier of electric drivetrain components for the company’s e-bus and EV commercial vehicle offering – including e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling.
With this agreement, Dana not only becomes an important supplier to Switch but will also invest USD 18 mn in the company, representing an approximate 1% stake.
Ashok Leyland has set itself a target of becoming one of the world’s top 10 CV brands. Switch Mobility has invested around $136 million in Switch Mobility and expects the new entity to raise its own capital in the future.