Ashok Leyland Moves UK Electric Bus Production to UAE’s Ras Al Khaimah for Better Efficiency and Market Reach

Key Highlights:

• Switch Mobility shuts UK facility, moves EV production to RAK, UAE.

• RAK to serve European, UK, and GCC markets.

• Expansion of the existing RAK unit, not a new plant.

• Investment below USD 3 million for transition.

• Switch India achieves PAT-positive status in FY2025.

Ashok Leyland, one of India’s leading commercial vehicle manufacturers, is reshaping its global operations. Through its electric vehicle arm, Switch Mobility, the company has decided to shift electric bus production from the United Kingdom to Ras Al Khaimah (RAK) in the United Arab Emirates. This move is part of a strategic effort to improve cost efficiency and strengthen market access for European and regional sales.

Why the Shift from the UK to RAK?

According to Shenu Agarwal, Managing Director and CEO of Ashok Leyland, and K.M. Balaji, CFO, the decision was made after a detailed evaluation of the company’s UK operations. The Sherburn facility in the UK was found to be financially unviable, leading to its closure.

Agarwal clarified that Switch Mobility has not exited the UK market, but only shifted its manufacturing and supply chain operations to RAK. “RAK is the right location not just in terms of access to the market but also in terms of overall cost structuring,” he said.

Switch India’s Strong Performance

Even as the restructuring takes place, Switch Mobility India continues to perform well. The company achieved PAT-positive (profit after tax) status in the first half of the current financial year, marking a major milestone for its EV business. However, management noted that sustaining similar profitability in global markets requires an efficient supply chain and cost-effective production setup, which RAK offers.

Strategic Benefits of Ras Al Khaimah

Relocating production to RAK is part of a global trend in the automotive industry, where manufacturers are moving toward localized, cost-optimized hubs. For Ashok Leyland, RAK offers a strategic location with strong logistics advantages and lower operating costs, making it a preferred choice for serving both European and Gulf Cooperation Council (GCC) markets.

The RAK plant will now manufacture electric buses for European and UK sales, while also catering to the growing demand in the GCC region. The company confirmed that some components will continue to be sourced from India, reinforcing its “Make in India, serve the world” approach.

Cost-Efficient Expansion Plan

One of the highlights of this transition is its capital-efficient approach. Instead of building a new factory, Ashok Leyland is expanding its existing RAK facility to include electric bus manufacturing. This expansion requires a relatively small investment, less than USD 3 million, making it both cost-effective and quick to implement.

A Step Toward Global Growth

By shifting its EV production to Ras Al Khaimah, Ashok Leyland aims to strengthen its global footprint while maintaining profitability and operational efficiency. The move aligns with the company’s broader vision to build a sustainable and scalable global EV business through Switch Mobility.

Also Read: Bajaj Auto’s Smart Move: Balancing CNG and Electric Power for India’s Future Mobility

CMV360 Says

Ashok Leyland’s decision to relocate Switch Mobility’s electric bus production from the UK to Ras Al Khaimah marks a smart strategic shift. With cost savings, strong logistics, and better market access, the move supports the company’s goal of expanding its electric mobility presence globally while staying profitable and competitive in both European and GCC markets.