Switch Mobility Limited UK (Switch UK) has initiated a consultation process with employees that may result in the closure of its manufacturing operations at the Sherburn facility, following ongoing economic uncertainty in the UK and Europe, alongside a slower-than-anticipated adoption of electric vehicles (EVs) in public transport.
While Switch UK plans to fulfill existing orders and maintain after-sales support, future UK and European demand will be met through Ashok Leyland’s alternative manufacturing facilities in India and the UAE. Meanwhile, Switch Mobility Automotive Ltd (Switch India) is focusing its efforts on the rapidly expanding Indian EV market, which is projected to grow significantly in the coming years.
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, commented, “Despite Ashok Leyland’s long-standing commitment to the UK market, the adoption of zero-emission passenger vehicles has been slow. This is the right time to reduce our losses in the UK and focus on more promising markets.”
In India, the EV bus segment is performing strongly. Switch India expects to break even on EBITDA by FY25 and anticipates tripling its production in FY26, fueled by a robust backlog of 1,800+ e-bus orders. In the electric light commercial vehicle (e-LCV) sector, Switch India holds an 80% market share in the 2-3.5-ton segment, with a potential for 50-80% growth in FY26.
K M Balaji, Chief Financial Officer of Ashok Leyland, explained, “If UK manufacturing ceases, it will help mitigate ongoing losses from that market. The £45 million equity infusion approved earlier this year will cover Switch UK’s cash flow needs, while Switch India is performing better than expected and likely won’t require additional capital in the near future. Overall, we anticipate that the value generated by Switch’s EV business will far exceed the investments made.”
Switch Mobility, a prominent member of the Hinduja Group, stands at the forefront of global electric mobility, focusing on electric buses and light commercial vehicles. Born from the synergy between Ashok Leyland’s engineering prowess and Optare’s cutting-edge design, Switch blends world-class expertise to offer zero-emission solutions for both urban and intercity transport. With manufacturing plants in the UK and India, Switch has deployed over 1,000 electric vehicles worldwide, collectively covering more than 150 million green kilometers. Dedicated to innovation and excellence, Switch Mobility is shaping the future of sustainable transportation.
