Brokerage firm Morgan Stanley has given an ‘overweight’ rating for Ashok Leyland with a price target of Rs 142, after the company announced its plans to expand its UK-based subsidiary Switch Mobility to India.

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The company will form two subsidiaries called Switch Mobility Automotive and OHM Global Mobility. Switch Mobility Automotive will carry on Ashok Leyland’s EV strategy in India and OHM will focus on providing mobility as a service offering.

“We do not value Switch Mobility in our sum-of-the-parts valuation, currently, as the business is very small in scale. But we will monitor new EC order wins by the entity both in India and overseas," said the brokerage.

Dheeraj Hinduja, Chairman, Ashok Leyland, and Switch Mobility, said that Switch Mobility Automotive will help them fulfill the company’s aspiration of zero-carbon-emission transportation. With the strong presence and proven expertise in the commercial vehicle market and the experience of operating electric vehicles, the company sees a huge opportunity for growth through Switch's expansion in Indian and global markets.