Switch Mobility intends to establish multiple factories in India to manufacture 2,500 electric buses.

As a result, in addition to using Ashok Leyland's existing bus and LCV setup, it is looking into new states such as Maharashtra, Uttar Pradesh, and Rajasthan, among others.

Switch Mobility intends to establish multiple factories in India, with an increased order book of over 2,500 electric buses. Apart from manufacturing vehicles in Tamil Nadu, the Chennai-based OEM is in talks with the governments of Maharashtra and Uttar Pradesh about establishing a plant.

Instead of establishing a large plant capable of producing 10,000 to 15,000 buses, Switch Mobility is now investigating the possibility of establishing satellite factories across the country to serve different geographies with smaller capacities.

Switch Mobility CEO Mahesh Babu told that the company is considering multiple assets within the group rather than a dedicated factory. As a result, in addition to using Ashok Leyland's existing bus and LCV setup, it is looking into new states such as Maharashtra, Uttar Pradesh, and Rajasthan, among others.

Switch Mobility claims that the supply chain is well-established at the back end. Except for the critical cells, almost everything is manufactured locally. Switch understandably wants to localize cells once manufacturing begins locally, thanks to the government of India's ACC PLI scheme.

According to Babu, in the bus manufacturing industry, having multiple bases, each with a 2,000-vehicle-per-year capacity, is a more prudent model. He believes that the key would be to allow private players to enter the market in order to scale up demand. Otherwise, once governmental demand has dried up, demand may simply choke out.

Switch Mobility will need to invest more than Rs 6,000 crore in the business over the next three to five years to meet its growing order book for electric buses and CVs.

The funds will be used to create next-generation buses and e-LCVs, as well as new factories and OHM Mobility. While Switch Mobility will require approximately Rs 1,000 crore to develop new products for India and global markets, OHM Mobility will require an investment of Rs 4,500 crore to Rs 5,000 crore to acquire these buses and operate them on long-term lease contracts for State Transport Undertakings (STUs).

With the CESL tender likely to last two years, Switch is currently within its budget, though if it wins the next few tenders, it will need funds quickly.

Meanwhile, as metro rail networks expand across India, Switch Mobility management claims to be receiving a high volume of requests for metro rail feeder services in cities.

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