Ashok Leyland, the Indian flagship of the Hinduja Group, has announced that its Board has approved the acquisition of 100% of Ohm Global Mobility Private Ltd (OHM) from OHM International Mobility Ltd for a nominal consideration of Rs 1 lakh. As the company is yet to become operational the consideration was nominal.
With this move, OHM becomes a 100% subsidiary of the company. Ashok Leyland has also announced that it will be investing up to INR 300 Cr as equity into OHM to operationalize the company. In addition, existing E-MaaS contracts will be transferred to OHM subject to necessary approvals.
Why it matters
E-MaaS (electric – Mobility as a Service) is gaining significance in India and seen as an area of growth potential. Mobility as a Service refers to the full service pay per km model that ensures end-to-end hassle-free mobility services – especially important in future electric commercial vehicle operations. Vehicles come with the chargers, infrastructure set-up, vehicle operations and maintenance all covered under the transaction with OHM.
Ashok Leyland says it feels now is the right time to operationalize OHM India. E-MaaS will likely be a strategy adopted by both public and private sector fleet operators to enhance EV penetration. India’s government is looking to strengthen the payment mechanism under E-MaaS and there are several initiatives that it is pursuing to enhance EV adoption. OHM will also offer electric vehicle subscriptions with varied tenures and benefits for operators.
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Value added services will include end-to-end connected fleet management services to enhance fleet efficiency and reduce TCO (total cost of ownership) for operators.
Given this backdrop, the OHM acquisition looks like a smart synergy for Hinduja and will potentially benefit its Ashok Leyland commercial vehicles operations as it becomes operational.
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