Ashok Leyland, the flagship company of the Hinduja Group, has recently secured defence contracts worth over Rs 7 billion, further strengthening its position in the defence mobility sector. These contracts are aimed at enhancing troop transportation, logistics, and specialized mobility needs under the Close-in Weapon Systems (CIWS) programme. The newly awarded contracts encompass a range of vehicles, including the Stallion 4×4, Stallion 6×6, Short Chassis Bus, and Mobility System Travelling Platform. The defence business remains a crucial component of Ashok Leyland’s long-term expansion strategy, with the company committed to providing advanced mobility solutions for the Indian Armed Forces and paramilitary units. In addition to its current projects, Ashok Leyland has developed a robust pipeline of defence orders across multiple segments and is actively participating in upcoming tenders. These efforts are expected to further strengthen its footprint in the defence sector. Meanwhile, an exchange filing by the company’s promoters revealed that approximately 30% of their stake in Ashok Leyland is pledged. At the company's current market capitalisation, this pledged stake is valued at over Rs 64 billion. As of December 31, 2024, Hinduja Automotive held a 35 per cent share in Ashok Leyland. Separately, the company has decided to shut down the manufacturing and assembly unit of its EV arm, Switch Mobility, in the UK. The decision is attributed to economic uncertainties and the slower-than-anticipated adoption of electric vehicles in public transport across the UK and Europe. Market challenges and a strategic realignment have led to this closure, as the company adapts its approach to the evolving industry landscape. News source: Indian Infoline