Ashok Leyland Approves ₹305.7 Crore Investment in Subsidiaries to Strengthen Bus Manufacturing and Electric Mobility

Key Highlights

• Ashok Leyland approves ₹305.7 crore investment in two subsidiaries.

• ₹5.70 crore for VBCL to expand bus manufacturing capacity.

• ₹300 crore for OHM Global Mobility to scale e-mobility services.

• Investments to be completed by March 2026 and March 2027.

• Strategy aims to strengthen both conventional and electric mobility segments.

Ashok Leyland Limited, the flagship company of the Hinduja Group, has announced a significant investment plan worth ₹305.7 crore across its two wholly-owned subsidiaries, Vishwa Buses and Coaches Ltd (VBCL) and OHM Global Mobility Private Limited. This move underlines the company’s dual focus on strengthening conventional bus manufacturing and accelerating growth in electric mobility solutions.

Major Investment Approvals

At its Board of Directors meeting held on August 14, 2025, at 1:35 PM IST, the company approved the following investments:

• Up to ₹5.70 crore in VBCL

• Up to ₹300 crore in OHM Global Mobility, to be invested in one or more tranches

Both investments remain subject to regulatory approvals and compliance requirements.

Boosting VBCL’s Bus Manufacturing Capabilities

Vishwa Buses and Coaches Ltd, incorporated on November 19, 2020, is engaged in bus body and coach-building for the automobile sector. Its financial performance has shown steady growth:

The approved investment of ₹5.70 crore will help:

• Support ongoing business requirements

• Expand infrastructure to meet rising demand

• Ensure transaction completion by March 31, 2026

Scaling OHM Global Mobility’s EMaaS Model

OHM Global Mobility, incorporated on March 8, 2021, follows an “e-Mobility as a Service” (EMaaS) model, providing operation and maintenance services for electric buses and trucks on a pay-per-use basis. Its financial journey reflects rapid growth:

The proposed ₹300 crore infusion will be utilized to:

• Expand EMaaS operations across India

• Strengthen service capabilities for electric buses and trucks

• Complete the investment by March 31, 2027

Governance and Compliance

Both subsidiaries fall under related party transactions as per SEBI (LODR) Regulations, 2015. The promoter group holds no special interest beyond its shareholding, and transactions are carried out at arm’s length.

Disclosures were made under Regulation 30 of SEBI LODR and in line with the July 13, 2023, circular, with submissions filed to NSE and BSE. No additional government approvals are required.

Strategic Significance

With this dual investment, Ashok Leyland is pursuing a two-pronged growth strategy:

• Strengthening its position in conventional bus manufacturing through VBCL

• Accelerating the adoption of electric mobility via OHM’s scalable EMaaS model

By committing ₹305.7 crore, Ashok Leyland is positioning itself as a market leader across both traditional and electric bus segments, ensuring long-term competitiveness in India’s evolving transportation landscape.

Also Read: Montra Electric Opens New e-SCV Dealership in Coimbatore with TVS Vehicle Mobility Solution as Channel Partner

CMV360 Says

Ashok Leyland’s ₹305.7 crore investment reflects its clear vision to balance conventional bus manufacturing with future-ready electric mobility. By empowering VBCL and OHM Global Mobility, the company is strengthening its presence in both traditional and sustainable transport. This strategic move positions Ashok Leyland as a key player in India’s evolving mobility sector, driving long-term growth and innovation.