Ashok Leyland Approves GBP 30 Million Investment in Optare Plc

Ashok Leyland Limited informed stock exchanges about its board approval for an investment of up to GBP 30 million, which equals about Rs 375 crore, in its UK subsidiary Optare Plc. The company will make this investment as equity in one or more tranches. 

Optare Plc manufactures and sells buses and commercial vehicles. The subsidiary holds the electric vehicle initiatives of the group, which include Switch Mobility Limited in the UK and Switch Mobility Automotive Limited. Optare reported consolidated revenue of ₹1,232.59 crore for the year ended March 31, 2025. This marks growth from ₹707.30 crore in FY24 and ₹229.72 crore in FY23.

The investment aims to repay loans and meet other business needs. Ashok Leyland holds 93 per cent stake in Optare at present. After the allotment, the stake will rise to 93.28 per cent. Hinduja Automotive Limited, the promoter of Ashok Leyland, owns 6.52 per cent in Optare. The deal follows a valuation from an independent valuer and uses cash as consideration. Completion is set by March 31, 2026.

Ashok Leyland share price fell on March 20, 2026. The stock closed at ₹167.99, down 0.34 per cent. The company follows a strategy to support its EV business through Optare and Switch Mobility. Optare serves as the base for electric buses and light commercial vehicles. Ashok Leyland eyes growth in the global EV market for buses and LCVs.

In the past year, Ashok Leyland made several investments. In April 2025, it put GBP 45 million in Optare, which raised its stake from 92.59 per cent to 93 per cent. In August 2025, it approved ₹305.7 crore in subsidiaries Vishwa Buses and Coaches Ltd and OHM Global Mobility Pvt Ltd. In September 2025, it announced ₹5,000 crore over seven to ten years for India's battery ecosystem with CALB Group. The firm plans Rs 954 crore capex for FY26, with Rs 1,000 crore more, focused on EVs.

This investment fits Ashok Leyland's push into electric vehicles and global operations via subsidiaries. Investors track these moves for commercial vehicle and EV sector updates in India and UK.