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


By Robin Kumar Attri

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Updated On: 16-Aug-2025 05:38 AM


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Ashok Leyland approves ₹305.7 crore investment in VBCL and OHM Global Mobility to boost bus manufacturing and expand e-mobility services, strengthening its dual growth strategy in India.

Key Highlights

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:

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:

Financial Year

Revenue (₹ Crore)

2022–23

99.94

2023–24

239.81

2024–25

295.35

The approved investment of ₹5.70 crore will help:

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:

Financial Year

Revenue (₹ Crore)

2022–23

Nil

2023–24

1.72

2024–25

50.37

The proposed ₹300 crore infusion will be utilized to:

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:

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.