Ashok Leyland to start manufacturing electric, hybrid buses in India

Commercial vehicle manufacturer Ashok Leyland is planning to start manufacturing and marketing its electric and hybrid buses in India from next year, in line with the Prime Minister Narendra Modi's Make in India campaign.

Speaking to the reporters during the visit of Vince Cable MP, UK Secretary of State for Business, Innovation and Skills, to the company headquarters, Vinod Dasari, managing director of Ashok Leyland, said that Optare, the company's arm in UK, has been leading the electric and hybrid vehicle manufacturers there and its intention is to bring the Optare products to India.

"In January we will be showcasing the first Optare vehicle in India," he said. Further, he added, "It is our intention to bring the technology to India along with our own Prime Minister Narendra Modi's initiatives to promote Make in India. We will be taking the Optare vehicle and will start manufacturing the electric version and the hybrid version in India, some time next year."

The electric and hybrid bus cost a lot of money and they do not make economic sense by themselves unless the State comes forward to support, he said thanking UK government for its support. The company sells around 100 units in UK a year. The company will be launching the Solo bus from Optare, through Ashok Leyland, in India in the Bus Expo in New Delhi in January 22, next year.

The company would have to make investments in electric battery handling capabilities, not manufacturing capabilities. The bus itself will not require substantial investments other than the tooling to make it.

The company has two manfuacturing facility for buses, including the one in Alwar, Rajasthan and the manufacturing of the electric and hybrid buses from Optare could take place in one of these places. The company is also considering whether it should make it in its facility in Middle East, where it has showcased its Optare products.

The company would first look at the Solo and the Versa models of Optare. The hybrid version has a smaller diesel engine and it is connected to an electric drive. The diesel engine will be from Ashok Leyland while the electric motor and the batteries will be imported from UK, US, China or any part of the world.

When asked whether the country is ready for electric, hybrid buses, he said, "20 years ago when we brought the CNG buses, there was no market in India. There was no CNG available, but it is was the right thing to do for the country. We are the market leader and we have to do things to lead."

The company is looking at marketing through State governments and has said that it had discussion with various State governments and many have shown their interest. The electric bus, once charged, will run for 200-300 kilometers depending upon the battery size.

The bus would cost anywhere between Rs 2-3 crore. A metro city rider could be a purely electric bus, while if there are flyovers to be covered and require more torque, it would require a hybrid bus.

He said that the manufacturing capacity is not a constrain and it has not set any manufacturing target. However, he said that the support from the government, State or the Centre, would be important for the product. While the Prime Minister's National Electric Mobility Programme, which had some funding earlier, would be helpful, it would require more support, he said.

The Ministry of Heavy Industries is still very keen on pursuing electric vehicles, which is also reason for the company to showcase the electric, hybrid bus in January.

The company would also look at exports from India. The buses would be marketed by Ashok Leyland, while in UK it is Optare.

Vince Cable MP, UK Secretary of State for Business, Innovation and Skills, who was visiting the Ashok Leyland's headquarters in Chennai, has said that the UK is keen on developinig collaboration between UK and India in industry and education. He is heading a deligation from UK and has been visiting Delhi, Pune, Goa and Chennai.

He mentioned that the British automobile industry is expanding and is interested to create collaboration with Indian companies. The UK govenrment is loking at electric vehicles as increasingly important as it helps in reducing the carbon emission.

Mentioning the operations of Ashok Leyland and its UK arm Optare, he said, "This truly an example of the shared importance the UK and India place in developing the next generation of electric vehicles as well as advanced manufacturing."

He added that the collaboration between Universities in UK and India would benefit both the countries in producing better educated students.