Ashok Leyland approves ₹305.7 cr EV push by 2027

What the board approved

Ashok Leyland has outlined a clearer corporate structure for its electric mobility-as-a-service plans by placing future E-MaaS activity under OHM Global Mobility Private Ltd (OHM). The company said its board approved acquiring 100% of OHM from OHM International Mobility Ltd for a nominal consideration of ₹0.0001 crore (₹1 lakh). The consideration was described as nominal because OHM had not yet become operational at the time of the decision. Post-acquisition, OHM becomes a wholly owned subsidiary of Ashok Leyland. Alongside the ownership change, Ashok Leyland announced an equity infusion plan to operationalise OHM.

Why OHM is central to the E-MaaS plan

Ashok Leyland’s stated intent is to house “all future E-MaaS business” under OHM to bring greater focus. The company also said existing E-MaaS contracts will be transferred to OHM, subject to necessary approvals. This indicates OHM is positioned as the operating vehicle for contracts executed under an e-mobility-as-a-service model. Under this structure, customers typically pay for mobility or usage rather than buying the vehicles outright, aligning with a “pay-per-use model” referenced in the company’s filings. The move also creates a single entity to handle contract execution and operations for electric buses and electric trucks under the E-MaaS umbrella.

Equity infusion: ₹300 crore for OHM

Ashok Leyland said it will invest up to ₹300 crore as equity into OHM to operationalise the company. In a regulatory filing, the company also said it proposes to infuse fresh equity or preference capital of up to ₹300 crore in one or more tranches for business requirements. The same filing noted OHM India has a paid-up share capital of ₹0.0001 crore (₹1 lakh). The company described OHM as envisaged to operate in transportation, logistics operation and management, and e-MaaS. It also said the acquisition is part of its EV strategy for engaging in the e-MaaS business and could enhance operational efficiency and synergy.

Guarantees, comfort letters, and contract migration

Beyond capital, Ashok Leyland said any guarantees or comfort letters needed to secure future orders would be provided by the parent company, subject to necessary approvals. This detail matters because E-MaaS contracts can require performance guarantees, financing support, or backstops to win large fleet orders. The company also flagged that transferring existing E-MaaS contracts to OHM would be subject to approvals, signalling that counterparty consents or regulatory processes may be required. Together, these steps show an attempt to separate operational execution (in OHM) from balance-sheet support (from Ashok Leyland), while keeping control within the group.

Switch India’s supply role in the operating model

Ashok Leyland said Switch India will supply EV buses and light commercial vehicles to OHM for deployment under E-MaaS contracts. This links vehicle manufacturing and procurement to the group’s EV supply chain while using OHM as the contract operator. The company stated OHM would become an important company in Ashok Leyland’s EV portfolio. Operationally, this indicates OHM’s business model depends on receiving vehicles from within the group ecosystem and deploying them under contracted service arrangements.

Fresh funding for another subsidiary: VBCL

Separately, Ashok Leyland disclosed fresh investments in two wholly owned subsidiaries, Vishwa Buses and Coaches Ltd (VBCL) and OHM. The total investment planned is up to ₹305.7 crore, as per the company’s regulatory filing. The infusion into VBCL will be up to ₹5.7 crore. VBCL is described as a manufacturer of bus bodies and coaches. The company said the investments are aimed at meeting business requirements and supporting expansion plans.

Timelines and tranche-based infusion targets

Ashok Leyland said both investments will be made in multiple tranches as equity. It has set completion targets of March 31, 2026, for VBCL and March 31, 2027, for OHM. These dates provide a window over which the capital can be deployed, rather than implying a single immediate cash outflow. They also align with a longer operational ramp-up for OHM, which is tied to building and executing E-MaaS contracts.

Financial snapshot: FY25 revenues for VBCL and OHM

The regulatory filing also provided recent revenue numbers for the two subsidiaries. In FY25, VBCL reported revenue of ₹295.35 crore. OHM posted ₹50.37 crore in revenue in FY25, described as a sharp jump from ₹1.72 crore in FY24. These figures help frame the scale difference between the two entities, with VBCL operating at a much larger revenue base. At the same time, OHM’s growth between FY24 and FY25 signals that activities linked to its operating model have expanded.

Acquisition details on OHM’s capital and valuation

The regulatory filing stated OHM India was incorporated on March 8, 2021, in India to carry out the business of e-MaaS and that it was yet to commence operations at the time referenced in the acquisition announcement. It also noted that the cost of acquisition is ₹10 per share. The filing further said the acquisition value is at par, based on a valuation done by an independent valuer. These details are relevant because the ₹1 lakh paid-up capital and nominal acquisition consideration indicate the transaction was primarily about restructuring and ownership alignment rather than buying an operating asset with large historical earnings.

Key facts at a glance

What the move means for investors and the EV strategy

The announcements point to a governance and execution framework where E-MaaS contracts, and associated operations, are consolidated under a dedicated subsidiary. This can make performance tracking clearer by isolating contract economics, asset deployment, and operational metrics within OHM. At the same time, Ashok Leyland’s willingness to extend guarantees or comfort letters suggests the parent may still play a role in supporting bids and order wins. The tranche-based equity plan and the 2027 completion target indicate a staged build-out rather than an immediate full-scale roll-out. For the broader EV strategy, the linkage with Switch India for vehicle supply connects manufacturing capability with a service-led deployment model.

Conclusion

Ashok Leyland’s decision to consolidate future E-MaaS business under OHM, acquire the entity for a nominal amount, and plan up to ₹300 crore of equity infusion sets up a focused platform for its e-mobility-as-a-service ambitions. Alongside this, the company has earmarked up to ₹5.7 crore for VBCL, taking the combined planned infusion to ₹305.7 crore. The company has stated tranche-based funding timelines up to March 31, 2026, for VBCL and March 31, 2027, for OHM, indicating the pace at which these plans are expected to be executed.