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.
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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