Switch Mobility Receives Minority Investment From Dana; To Partner On Electrified CVs

Home-grown commercial vehicle manufacture, Ashok Leyland's electric vehicle subsidiary, Switch Mobility, has announced entering into a strategic agreement with Dana Incorporated. The company has announced that Dana, a leading player of drivetrain and e-propulsion systems, will make a minority investment in Switch Mobility. Under the terms of the agreement, Dana 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.

Dheeraj Hinduja, Chairman of Switch Mobility, commented, "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 USD 18 mn 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."

Also Read: Ashok Leyland's Switch Plans Global Electric Van Around 2024

Dheeraj Hinduja, Chairman of Switch Mobility has said that Dana will invest $18 million in the company

Switch Mobility was formed by combining the electric commercial vehicle operations of Ashok Leyland and Hinduja Group's UK-based bus subsidy, formerly known as Optare, in 2020. Earlier this year, the company announced the appointment of former Aston Martin boss, Dr Andy Palmer as Executive Vice Chairman and CEO, Switch Mobility, effective from July 1, 2021. Talking about the company, Hinduja added, "At Switch Mobility, we have ambitious plans to lead zero-carbon mobility globally through positioning innovative products and solutions with best in class TCO. I believe the partnership with Dana will accelerate the process, building on our strong relationship of many years."

Also Read: Ashok Leyland Reveals Its Global EV Plans; Renames Optare Group As Switch Mobility

Recently, the company also announced its plan to produce a global electric van around 2024. The vans will be for sale in developed markets like North America, Europe and Japan, and be produced in Europe, relying on Ashok Leyland's low-cost Indian supply base. The company also has lower-cost electric vans that will go on sale in emerging markets such as India later this year. Switch electric buses are already on the roads in London and it is also working on a new model.