Can Switch Mobility Build a Strong Moat in India’s Competitive E-Bus Market?

Key Highlights

• Switch Mobility achieved positive EBITDA and PAT in the first nine months.

• The company closed the March quarter with a strong double-digit EBITDA margin.

• The order book stands at over 1,800 electric buses.

• Ashok Leyland holds around 40% share in India’s bus market.

• Switch has started delivering electric buses in international markets.

India’s electric bus market is growing fast, but it is also highly competitive. In this cut-throat environment, Switch Mobility - the electric vehicle arm of Ashok Leyland - has achieved a major milestone. The company is now profitable in its electric bus business, something many global bus makers are still working toward.

Switch Mobility Turns Profitable

Ashok Leyland’s Executive Chairman, Dheeraj Hinduja, recently confirmed that Switch Mobility has crossed an important financial milestone. According to him, the company has a healthy order book and a clear product roadmap. He also shared that Switch has started delivering electric buses in international markets.

Most importantly, the company has achieved positive EBITDA and PAT in the first nine months of the financial year. This means the business is not only covering its operating costs but is also generating net profit.

This achievement marks a strong turnaround for the EV subsidiary.

A Two-Year Turnaround Story

Just two years ago, in FY24, management had asked investors to remain patient with the electric vehicle business. At that time, Switch Mobility was still in investment mode.

By mid-2025, company executives informed analysts that they were pleased with the performance of Switch Mobility. They stated that the company was on track to achieve EBITDA break-even in the fiscal year, indicating that cash burn was under control.

In May 2025, the company shared another positive update. Switch Mobility had closed the March quarter with a strong double-digit EBITDA margin. It also targeted full net-level breakeven in the current fiscal year. This progress was supported by a strong order book of more than 1,800 electric buses.

Backed by Ashok Leyland’s Strong Market Position

Ashok Leyland holds around 40% share in India’s bus market. The company has long been known for its diesel buses and trucks. Now, it is using this strong base to expand aggressively in the electric bus segment.

This large market presence gives Switch Mobility a strong platform. With established relationships, service networks, and brand trust, Ashok Leyland can support the EV business as electrification gains momentum in India and global markets.

Can Switch Build a Long-Term Competitive Edge?

While early profits are encouraging, the real question is whether Switch Mobility can build a long-term moat in India’s highly competitive electric bus market.

The segment is known for large government contracts, intense competition, and tight margins. In such a market, profitability can quickly come under pressure. However, Switch’s improving margins, international deliveries, and strong order pipeline suggest that the company is moving in the right direction.

If it continues to execute well, maintain healthy margins, and expand its product roadmap, Switch Mobility could establish a durable edge in the fast-growing electric bus industry.

Also Read: Tata Motors Indonesia Secures Biggest Order for 70,000 Yodha and Ultra T.7 Vehicles

CMV360 Says

Switch Mobility’s journey from losses to profitability highlights a successful transformation within just two years. Backed by Ashok Leyland’s 40% bus market share and supported by a strong order book of over 1,800 electric buses, the company is now profitable at both EBITDA and net levels. The coming years will show whether this early success becomes a sustainable competitive advantage in India’s rapidly evolving e-bus market.