Ashok Leyland: Switch India to Turn Profitable in FY26 with 3X Bus Growth

Key Highlights:

• Switch Mobility expects to achieve its first net profit in India by FY 2026.
• The company plans to generate Rs 900-1,000 crore in revenue in FY 2025.
• Due to slow EV adoption in the UK, Switch may shut down its Sherburn manufacturing facility.
• The company will only sell buses in India.
• Switch UK is expected to incur a loss of GBP 20-25 million.

Ashok Leyland Ltd expects its electric vehicle subsidiary, Switch Mobility, to achieve its first-ever net profit in India by the fiscal year 2026. They anticipate significant growth in bus volumes, tripling from current levels. Switch Mobility's revenue target for the current fiscal year is between Rs 900 and 1,000 crore.

The Indian operations of Switch Mobility are already generating positive EBITDA. Ashok Leyland plans to focus on cost efficiency and closer collaboration with Switch to achieve profitability (PAT breakeven) within the next four to six quarters, according to Shenu Agarwal, MD & CEO of Ashok Leyland.

Switch Mobility marked Ashok Leyland’s entry into electric buses and light commercial vehicles. The company has manufacturing plants in Chennai and the UK. However, due to a slower-than-expected shift to EVs in public transport, it is considering shutting down its manufacturing and assembly operations at the Sherburn facility in the UK.

Ashok Leyland’s Chief Financial Officer, KM Balaji, stated that Switch Mobility India is expected to generate revenue between Rs 900-1,000 crore in the financial year 2025. The company plans to sell around 450 buses and over 1,000 LCVs during this period.

Switch Mobility’s management expects its sales to triple in the next financial year, supported by a strong order backlog of 1,300 buses. The company believes that India’s electric bus market will continue to grow rapidly in the coming years, driven by demand from both government and private players. Moving forward, Switch India will sell its buses outright and will not operate under the Gross Cost Contract (GCC) model.

The management stated that Switch Mobility's UK business is expected to incur a loss of GBP 20-25 million in the current financial year. The company also has a net debt of around GBP 80 million, which is due for repayment by the financial year 2029.

About Switch Mobility

Switch Mobility is a next-generation electric vehicle company with over 100 years of experience. It is part of the Hinduja Group and a global leader in electric mobility. The company specializes in electric buses and light commercial vehicles. Switch Mobility was formed by combining Ashok Leyland’s engineering strength with Optare’s innovative design. Together, they provide zero-emission solutions for urban and intercity transport.

The company has manufacturing facilities in both the UK and India. Switch Mobility has deployed over 1,000 electric vehicles worldwide, covering more than 150 million green kilometers. In India, Switch Mobility has introduced two electric buses—the EiV 12 and the EiV 22 Double Decker. The company is also working on a new, low-floor electric bus for city travel. In the electric LCV segment, it offers the IeV4 and IeV3 models.

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

CMV360 Says

Switch Mobility's growth in India looks promising, with strong demand for electric buses and LCVs. The decision to focus on outright sales could streamline operations. However, challenges remain in the UK due to slower EV adoption, leading to possible factory shutdowns and financial pressure.