- 25 Oct 2024
- ICICI Securities
ASHOK LEYLAND’S SUBSIDIARY GETS ORDER FOR 500 ELECTRIC BUSES
News: In a regulatory filing, Ashok Leyland, has announced that its subsidiary, OHM Global Mobility, has secured a significant order for 500 ultra-low floor electric buses from the Metropolitan Transport Corporation (MTC) of Chennai. The state-of-the-art EiV12 model buses, supplied by another subsidiary, Switch Mobility, will enhance public transport in Chennai, with 400 buses being non-AC and 100 equipped with air conditioning to ensure passenger comfort. Designed for efficiency and accessibility, these buses boast a range of over 200 kilometres per charge, making them well-suited for the city's extensive routes. The contract also includes a 12-year operational and maintenance agreement with OHM.
Views: Ashok Leyland currently has a robust orderbook of 2,000 buses which was 1,300+ at the end of Q1FY25. With 950 vehicles already operational, the company is poised to significantly impact India's public transport landscape. Buses segment is the solace space for the domestic CV industry which is currently witnessing a de-growth trend. With the increase in orderbook, Ashok Leyland will further drive the sales of buses domestically. Since the news came in market hours yesterday and stock reacted positively to it (up 2%), we don’t expect any further pricing action due to this development.
Impact: Neutral