Shares of the Chennai-based commercial vehicle maker - Ashok Leyland - rose as much as 10 per cent to hit an intraday high of Rs 137.45 after the company announced that its subsidiary Switch Mobility, electric bus and light commercial vehicle company, has entered into a strategic agreement with Dana, the global leader in drivetrain and e-propulsion systems. As part 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, Ashok Leyland said in a press release.
Dana will supply e-Axles, gearboxes, motors, inverters, software and controls, and electronics cooling equipment to Switch Mobility.
"Dana has a long-standing relationship with Ashok Leyland. This now extends to Switch Mobility and we are happy to have Dana invest in the company. With this agreement Dana not only becomes an important supplier to Switch but will also invest $18 million in the company, representing an approximate 1 per cent stake. The investment exemplifies the confidence placed by Dana in Switch and will help to strengthen the relationship further," said, Dheeraj Hinduja, Chairman of Switch Mobility.
Switch Mobility is a next-generation electric bus and light commercial vehicle company with the mission to enrich lives through green mobility. A mature start up, Switch was forged from the innovative EV elements of Ashok Leyland, the third largest bus and light commercial vehicle Original Equipment Manufacturer (OEM) in the world.
As of 12:21 pm, Ashok Leyland shares traded 6.8 per cent higher at Rs 133.80, outperforming the Sensex which was up 0.2 per cent.