Switch Mobility Banks on Strong Tender Wins Despite Rare Earth Supply Concerns

Key Highlights:

• Switch Mobility sees robust demand for EV buses and a strong order book.

• Tender for 10,000+ e-buses expected in September 2025.

• 1,000–1,200 vehicles already in the production pipeline.

• Ashok Leyland explores alternatives to rare earth shortages.

• Switch Mobility achieves PBT break-even, boosting confidence.

Ashok Leyland’s electric vehicle subsidiary, Switch Mobility, continues to strengthen its presence in the EV bus market despite global concerns over the shortage of rare earth elements. With robust tender opportunities and rising demand for electric buses, the company is focusing on growth while closely monitoring supply risks.

Ashok Leyland Monitors Rare Earth Risks

Dheeraj Hinduja, Chairman of Ashok Leyland, addressed concerns about the availability of rare earth elements. These materials are critical for manufacturing electric motors used in e-buses and e-LCVs under Switch Mobility.

“I would like to say that for the moment we are okay,” Hinduja said. He added that the company is exploring alternatives to ensure that production remains undisrupted despite global supply pressures.

Switch Mobility’s Strong Order Book

Switch Mobility currently enjoys a strong order book, fueled by increasing demand for electric buses in India. The company has already lined up between 1,000 to 1,200 vehicles for production, demonstrating its ongoing momentum in the EV segment.

Upcoming Tender for 10,000 Buses

A major tender for more than 10,000 electric buses is expected to open in September 2025. Switch Mobility is preparing to submit bids for these opportunities, which could further boost its market position.

The company’s consistent growth has also led to significant financial progress. Notably, Switch Mobility recently achieved PBT (Profit Before Tax) break-even for the quarter, highlighting its improving performance.

Industry-Wide Push for Policy Support

The shortage of rare earth elements is not just a challenge for Ashok Leyland but for the entire auto industry. Automakers, through SIAM (Society of Indian Automobile Manufacturers), have made representations to the government to address supply chain challenges and secure policy support.

Hinduja emphasized that while the current situation is manageable, clarity on the rare earth supply outlook will emerge soon. “In the next few weeks, we will definitely have a much clearer view of where we stand,” he said.

Also Read: Ashok Leyland Approves ₹305.7 Crore Investment in Subsidiaries to Strengthen Bus Manufacturing and Electric Mobility

CMV360 Says

Switch Mobility is strategically balancing growth opportunities with supply chain risks. With upcoming tenders, strong demand, and financial improvements, the EV arm of Ashok Leyland is well-positioned to expand further. However, ensuring a steady supply of rare earth elements will be crucial for sustaining its progress in the rapidly evolving electric mobility sector.