Ashok Leyland’s board has approved up to ₹850 crore in new funding for subsidiaries, boosting its electric mobility ambitions and supporting financial growth amid record CV sales.
Ashok Leyland’s board has approved fresh investments of up to ₹850 crore in its subsidiaries, a move that underlines the Indian truck and bus maker’s push to expand its electric mobility arm while supporting its finance businesses. According to EquityPandit, a large share of the funding is earmarked for Optare Plc, the UK-based unit that houses Switch Mobility’s British operations, with the rest aimed at group entities including Hinduja Housing Finance.
The capital injection is intended to meet Optare’s funding needs and help trim debt, continuing a pattern of support from the parent company. In March, Ashok Leyland disclosed a separate plan to infuse up to GBP 30 million into Optare through equity, reflecting the subsidiary’s role in the group’s global electric vehicle strategy. Optare also sits at the centre of Switch Mobility’s operations in both the UK and India.
The timing of the investment follows a stronger year for Ashok Leyland’s electric vehicle business. Industry reports say Switch Mobility India turned profitable in FY26 and sharply increased deliveries, shipping 1,530 electric buses during the year, up 238% from the previous year, alongside about 1,600 electric light commercial vehicles. Business Today also reported that Switch Mobility became India’s top-selling electric bus maker in FY26, based on VAHAN data.
Ashok Leyland’s finance subsidiaries have also been growing. EquityPandit said Hinduja Leyland Finance lifted assets under management by 24% to about ₹59,000 crore in FY26, while profit after tax rose 20% to ₹491 crore. Hinduja Housing Finance posted 15% growth in assets under management to roughly ₹16,000 crore. The broader group has been building on a record year for commercial vehicle sales, with Reuters-style reporting in related summaries noting that the company posted its highest-ever quarterly and annual volumes, even as its shares later gave back early gains and were last quoted 1.4% lower at ₹173.67 on the NSE.
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