Switch Mobility Shifts Focus to India, May Exit UK Plant

Sherburn, UK - SWITCH Mobility Ltd., a subsidiary of Ashok Leyland and an electric vehicle manufacturer, is reevaluating its manufacturing operations in light of persistent economic uncertainty in the UK and Europe, along with a slower-than-expected shift to electric public transport. As part of this reassessment, the company’s Board of Directors has initiated a consultation process with employees, which could potentially result in the closure of manufacturing and assembly activities at its Sherburn facility, UK.

In response to these challenges, Switch is strategically shifting its focus toward the rapidly growing electric vehicle market in India. With India poised for significant expansion in the EV sector, the company aims to strengthen its presence and capitalize on emerging opportunities in this high-growth market.

Mr. Shenu Agarwal, MD & CEO, Ashok Leyland, said, “While Ashok Leyland remained committed to the UK market over the last 15 years, adoption of zero emission passenger vehicles has been tepid. This seems to be the right time to cut down losses in the UK market. Switch India is likely to achieve EBITDA breakeven in FY25, and is hoping to treble volumes in FY26, on back of 1800+ e-Bus orders in hand. In e-LCVs, within the 2-3.5T segment, the Company’s market share is at 80% plus, with prospects of 50-80% volume growth in FY26”.

Switch UK remains committed to fulfilling all existing orders while ensuring continued aftermarket support for its current fleet of vehicles. Despite potential changes to its manufacturing operations, the company reassures its customers that service and support will remain uninterrupted.

Once market conditions improve, Switch plans to cater to the UK and European markets through Ashok Leyland’s alternative manufacturing facilities in India and the UAE. At the same time, its Indian counterpart, Switch India is gearing up to strengthen its presence in the rapidly expanding Indian EV market. With India poised for substantial growth in electric mobility over the coming years, Switch India aims to capitalize on emerging opportunities and scale its operations accordingly.

Mr. K M Balaji, Chief Financial Officer, Ashok Leyland, said, “The current cash flow requirements of Switch UK will be borne out of GBP 45mn of equity infusion already approved by the Board of Ashok Leyland in February this year. On an overall basis the value accretion from Switch EV business is expected to be much more than the investments made in these entities”. 

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