Ashok Leyland’s Electric Vehicle Unit Switch Mobility Aims for Break-Even in India by Year-End

Key Highlights:

• Ashok Leyland expects Switch Mobility to reach EBITDA break-even in India this fiscal year.
• Switch Mobility produces electric buses and light commercial vehicles, like the EiV 12, EiV 22, IeV4, and IeV3.
• The company has a 2,000-bus order to fulfil in the next 12 months and expanded Chennai capacity to 3,000 buses yearly.
• A new low-floor city electric bus is in development.
• Switch targets a 15-20% market share in India’s electric LCV segment by 2030.

Switch Mobility Ltd, the electric vehicle subsidiary of Ashok Leyland, expects to cover its main expenses by the end of this financial year in India. According to Chairman Dheeraj Hinduja, the company’s goal is to break even on an EBITDA basis, which means it plans to cover its operating costs without yet making overall profits.

Building Electric Buses and LCVs 

Switch Mobility marks Ashok Leyland's entry into the electric vehicle market with a focus on buses and light commercial vehicles (LCVs). The company manufactures these vehicles in India and the UK. The company has already launched two electric buses, the EiV 12 and EiV 22 Double Decker in India. Additionally, Switch is developing a low-floor electric bus for city travel on a new platform.

What is EBITDA Break-Even? 

Reaching EBITDA break-even means Switch Mobility will be able to pay for its everyday running costs from the revenue it generates. However, this doesn’t mean the company is fully profitable, as it still needs to cover costs like interest, taxes, and depreciation.

Expanding Production and Filling Orders 

Switch Mobility has received orders for 2,000 electric buses, which it plans to deliver over the next 12 months. The company has increased its annual production capacity in Chennai to 3,000 buses to meet this demand. This expansion prepares Switch to meet the growing demand for electric buses from states across India.

New Electric LCV Models 

Switch recently launched two models in the electric light commercial vehicle segment, the IeV4 and IeV3. These vehicles target the market for smaller goods carriers under seven tonnes. 

The company expects electric vehicle use in this segment to reach 5% over the next two to three years, with further growth to 12-13% by 2030. By then, Switch Mobility aims to capture a 15-20% market share in this category.

Future Plans and Market Expansion 

Switch Mobility is actively building its position in India’s electric vehicle market, especially in commercial transport. With a strong order pipeline and increased production capacity, the company is set to support India’s shift to electric vehicles in the commercial sector, helping to provide cleaner transportation options in the country.

Also Read: Magenta Mobility partners with Switch Mobility to acquire 500 SWITCH IeV4 vehicles.

CMV360 Says

Switch Mobility’s progress towards covering its operating costs reflects growing demand for electric buses and commercial vehicles in India. The company’s focus on both buses and LCVs aligns well with market needs, and its increased production capacity puts it in a strong position. If it can continue to meet its targets, Switch could play an essential role in advancing electric transport in India.