New Delhi (Anish Yande): Ashok Leyland shares surged by 7 percent on Thursday. Shares of the automobile manufacturer rose to Rs 124.80 following the announcement of the formation of two subsidiaries.
Ashok Leyland shares up by 7 percent:
Following the opening bell, the shares were trading at Rs 124, at an increase of 6.17 percent. 3.31 crore shares have been exchanged on the BSE and NSE. The shares of Ashok Leyland had hit a 52-week high of Rs 138.90 per share.
Shares of Ashok Leyland, on Thursday, surged 7 percent to Rs 124.80 on the BSE after the commercial vehicles major said it has decided to form two new subsidiaries as part of its plans to strengthen green transport solutions.
Ashok Leyland is planning to bolster its offerings in the green transport segment.
The automobile major's subsidiary, Switch Mobility Ltd is forming two new production units. Switch Mobility Ltd is a UK-based electric vehicle automobile firm that manufactures buses and vans.
Switch Mobility Automotive Ltd, the unit would be formed to formalize the electric vehicle strategy in India. OHM Global Mobility Pvt Ltd is a solutions company that has plans to launch mobility as a service globally.
OHM Global Mobility and Switch Mobility Automotive would be providing net carbon zero-emission solutions in India. The subsidiaries would be developing EV urban buses and LCVs in Indian markets.
Sales of Ashok Leyland up in March quarter:
In March 2021, Ashok Leyland recorded a rise in bus sales from 585 units to 1,117 units. The sales of commercial vehicles rose from 289 units to 5,860 units. Total vehicle sales rose from 1,734 units to 15,761 units, at an increase of 809 percent.
CEO and MD of Ashok Leyland, Vipin Sondhi stated that the formation of the two units would allow Ashok Leyland to pursue its sustainability agenda. The Chairman at Ashok Leyland, Dheeraj Hinduja, stated 'we see huge opportunities for growth through Switch's expansion in Indian and global markets.
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