Ashok Leyland says Optare Infusion is Switch UK Debt Repayment, Not Growth Capital

Ashok Leyland told reporters on August 14 that the equity it keeps putting into UK subsidiary Optare Plc is being used to retire loans on Switch Mobility's UK books, and that its Indian electric vehicle arm is no longer drawing on the parent.

Responding to a question on how much further funding Switch Mobility would need, management said there was confusion between the two entities. Switch India is financially independent and is not being supported by Ashok Leyland at present, they said. The equity going into Optare is essentially to repay loans that Switch UK carries.

"What you have seen in the press (23:13) is the equity share capital investment in Optare essentially to repay the loans which Switch UK has in their books". "So, I mean, Switch India is now financially independent and it is free. It is not supported by Ashok Leyland" the company management said during a Q1FY27 post results confrence call with the media.

The clarification came hours after Ashok Leyland's board approved an investment of up to GBP 25 million, roughly Rs 325 crore, in Optare; the holding company for Switch Mobility Ltd., U.K., and Switch Mobility Automotive Ltd. The regulatory filing lists the purpose as loan repayment and other business requirements.

It is the third infusion in about 16 months. Ashok Leyland's stake in Optare moves to 93.49 percent from 93.28 percent post-allotment. ICICI Direct, had in March this year, noted that it expects these infusions to close down manufacturing operations in UK, as indicated by the company in the past.

Optare reported consolidated revenue of Rs 1,879.11 crore in FY26, against Rs 1,213.41 crore a year earlier.