Ashok Leyland's shares saw a notable rise on October 24, driven by a significant new order win despite an otherwise subdued market. The commercial vehicle giant secured a major contract to supply 500 electric buses to Chennai’s Metropolitan Transport Corporation (MTC). This order, acquired through its electric mobility arm, OHM Global Mobility, strengthens Ashok Leyland’s leading position in India’s bus segment and highlights its commitment to sustainable urban transportation. This development is further supported by the company’s subsidiary Switch Mobility, which will provide and maintain the buses for the next 12 years, demonstrating Ashok Leyland's push towards green transportation.

Stock Performance Boosted by Major Order

Ashok Leyland’s shares surged in early trading on October 24, reaching an intraday high of Rs 218 despite broader market weakness. This represents a 1.43% increase from the previous close, reflecting the market’s positive reception to the company’s latest business announcement. In contrast, the NSE Nifty index was slightly lower in the early hours of trade, but Ashok Leyland remained in demand due to its significant order win.

Landmark Contract for Electric Buses

The company secured a major order from Chennai’s Metropolitan Transport Corporation for 500 electric buses. Ashok Leyland’s subsidiary, OHM Global Mobility, will deliver 12-meter ultra-low floor electric buses as part of this project. The company’s statement highlights that this contract reinforces its leadership in India’s bus sector and showcases its commitment to sustainable, urban mobility solutions.

Commitment to Sustainability and Urban Mobility

Ashok Leyland is expanding its presence in the electric vehicle market, focusing on greener public transport options. Shenu Agarwal, MD & CEO of Ashok Leyland, expressed excitement about continuing the partnership with the Metropolitan Transport Corporation, emphasizing the company's role in promoting green transportation in India. This new order adds to Switch Mobility’s existing operations, which already include over 950 electric vehicles and a robust order book exceeding 2,000 units.

Comprehensive Operations and Maintenance Plan

Switch Mobility, Ashok Leyland’s subsidiary, will supply the state-of-the-art EiV12 model buses. These buses will be split into two categories: 400 non-air-conditioned units and 100 with air conditioning. The company will oversee the operation and maintenance of the fleet for a 12-year period, ensuring long-term efficiency and reliability.

Infrastructure Development for Efficient Operations

The company is also investing in the necessary infrastructure to support this large-scale project. Ashok Leyland plans to develop charging infrastructure across multiple locations, a crucial element for the smooth operation of these electric buses. This underscores their dedication to both technological innovation and operational excellence in the electric mobility space.