Switch Mobility, a subsidiary of Ashok Leyland, has announced plans to cease manufacturing and assembly operations at its Sherburn facility in the United Kingdom. This decision comes in response to ongoing economic challenges in the UK and Europe, coupled with a slower-than-anticipated transition to electric vehicles (EVs) in the public transport sector.
Despite the planned closure, Switch UK has assured that all existing orders will be fulfilled, and aftermarket support for its current fleet will continue. Future demand from the UK and European markets is expected to be met through Ashok Leyland’s manufacturing facilities in India and the United Arab Emirates when market conditions improve.
The company is shifting its focus to the rapidly growing Indian EV market. Switch Mobility Automotive Ltd, India (Switch India), plans to intensify its efforts in this high-growth market, which is projected to expand significantly in the coming years. The Indian subsidiary aims to achieve EBITDA breakeven in the fiscal year 2025 and seeks to triple its volumes in the following year, supported by orders for more than 1,800 electric buses.
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, stated that while the company has maintained its commitment to the UK market over the past 15 years, the adoption of zero-emission passenger vehicles has been limited. He emphasized that this move is timely to reduce losses in the UK market.
This strategic shift underscores Switch Mobility’s commitment to sustainable transport solutions and aligns with the evolving dynamics of the global EV market. By concentrating resources on India’s burgeoning EV sector, the company aims to leverage emerging opportunities and drive growth in the electric mobility space.
