Switch Mobility Shifts Focus to India, Plans Potential UK Manufacturing Exit
March 26, 2025 – National: Amid ongoing economic uncertainty in the UK and Europe and a slower-than-expected transition to electric vehicles (EVs) in public transport, Switch Mobility Limited UK (Switch UK) has announced the commencement of a consultation process with its employees regarding the potential cessation of manufacturing and assembly operations at its Sherburn facility.
The company has assured that it will complete all existing orders and continue providing aftermarket support for its current vehicle fleet. While the UK and European markets remain important, Ashok Leyland, the parent company of Switch Mobility, plans to leverage its manufacturing sites in India and the UAE to meet future demand. Concurrently, Switch Mobility Automotive Ltd (Switch India) is set to expand its focus on India’s rapidly growing EV market, which is projected to witness significant growth in the coming years.
Strategic Shift and Leadership Perspectives
Mr. Shenu Agarwal, MD & CEO of Ashok Leyland, commented on the decision, stating:
“While Ashok Leyland has remained committed to the UK market for the past 15 years, the adoption of zero-emission passenger vehicles has been sluggish. Given the circumstances, this seems to be the right time to mitigate losses in the UK market.”
He further highlighted the robust performance of the EV sector in India, noting that Switch India is on track to achieve EBITDA breakeven in FY25. The company aims to triple its revenues in FY26, backed by an order pipeline exceeding 1,800 electric buses. In the electric light commercial vehicle (e-LCV) segment (2-3.5T), Switch holds an 80% market share, with expectations of 50-80% volume growth in FY26.
Mr. K M Balaji, Chief Financial Officer of Ashok Leyland, emphasized the financial rationale behind the decision:
“The potential cessation of manufacturing activities is expected to curb losses in the UK operations. The current cash flow requirements of Switch UK will be supported by a GBP 45 million equity infusion, which was approved by the Board of Ashok Leyland in February this year. Switch India is in a much stronger position and is not expected to require significant equity infusions in the near future. Overall, the value creation from Switch EV is anticipated to significantly exceed the investments made in these entities.”
Future Outlook
Despite the potential closure of UK manufacturing operations, Ashok Leyland remains committed to the UK and European markets. The company intends to return when market conditions improve, leveraging its alternative manufacturing sites. Meanwhile, the primary focus will be on strengthening its foothold in India’s burgeoning EV market, capitalizing on its high growth potential and strong demand.
This strategic realignment is part of Ashok Leyland’s broader vision to enhance its presence in high-growth markets while optimizing global operational efficiency.
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