Ashok Leyland’s Subsidiary Switch Mobility May Shut Loss-Making E-Bus Plant In UK

Key Highlights:

• Switch Mobility UK may shut down its manufacturing unit in Sherburn.
• The company will complete existing orders.
  
• Switch India is focusing on the growing Indian EV market
• Ashok Leyland has approved a GBP 45 million equity infusion to support Switch UK’s transition.

Switch Mobility Limited UK, a subsidiary of Ashok Leyland, has announced plans to possibly stop its manufacturing and assembly operations at the Sherburn facility in the UK. The company mentioned that it would review the feasibility of its plant in Sherburn, North Yorkshire, through a consultation process with employees. This could potentially lead to the closure of the plant due to ongoing economic uncertainty in the sector.

The economic uncertainty continues in the UK and Europe, along with a slower shift to electric vehicles (EVs) in public transport. Ashok Leyland stated that the low demand for zero-emission passenger vehicles in the UK has led the company to rethink its operations after 15 years in the region. Despite the possible shutdown, Switch UK has assured that it will complete all existing orders and continue providing support for vehicles already in use.

Once market conditions improve, the company plans to serve the UK and European markets from Ashok Leyland’s manufacturing sites in India and the UAE. At the same time, Switch Mobility India is shifting focus to the fast-growing Indian EV market. The Indian subsidiary is expected to achieve EBITDA breakeven in FY25. It aims to triple its volumes in FY26. This growth will be supported by orders for more than 1,800 electric buses.

Leadership Insights:

Shenu Agarwal, MD & CEO of Ashok Leyland, said, "While Ashok Leyland has been committed to the UK market for 15 years, the adoption of zero-emission passenger vehicles has been slow. This seems to be the right time to cut losses in the UK market."

K.M. Balaji, Ashok Leyland's CFO, said that stopping manufacturing in the UK is expected to reduce operational losses. Switch UK's cash flow needs will be covered by a previously approved GBP 45 million equity infusion from Ashok Leyland’s board in February 2025.

About Switch Mobility

Switch Mobility, originally founded as Optare in 1985 and rebranded in November 2020. The company played a key role in the UK's electric bus market. It introduced Britain’s first locally built pure electric bus, the Metrodecker EV, in London in 2014. Currently, the company operates over 150 electric buses in cities like London and York. Globally, the company has deployed over 1,000 electric vehicles, covering more than 150 million green kilometers in its effort to drive the shift toward carbon-neutral transport.

Also Read: Bharat Mobility Global Expo 2025: SWITCH Mobility Launches the IeV8 Electric LCV

CMV360 Says

Switch Mobility's plan to shut down its UK factory shows the challenges in the EV market. Even though the company was an early leader in electric buses, slow demand and economic issues made it hard to continue. Moving focus to India makes sense due to the growing EV market there, but it also shows how tough it is for businesses to survive without strong local support.