Multinational automotive manufacturer Ashok Leyland's stock was up almost 10 percent on Friday on the BSE after its subsidiary and electrified commercial vehicles company Switch Mobility Ltd announced on Friday that Dana Incorporated (Dana), a global leader in drivetrain and e-propulsion systems, has agreed to make a minority investment in Switch.
According to a press release from the UK-based Switch Mobility, Dana will make a strategic investment in Switch Mobility, as well as be a preferred supplier of electric drivetrain components for the company's e-bus and EV stakeinverters, software and controls, and electronics cooling.
According to Dheeraj Hinduja, chairman of Switch Mobility, Dana will not only become a key supplier to Switch, but will also invest USD 18 million in the firm, or around one percent of the company.
“Dana has a long-standing relationship with Ashok Leyland. 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. The investment exemplifies the confidence placed by Dana in Switch and will help to strengthen the relationship further," Dheeraj Hinduja, Chairman of Switch Mobility, was quoted in a press release.
Switch Mobility was formed by combining Ashok Leyland's electrical commercial vehicle operations in India and Optare in the UK to secure a leading global position in net zero carbon buses and light commercial vehicles.
At 10:20 am, the shares of Ashok Leyland were trading 9.58 percent higher at Rs 137.20 apiece on the BSE.