Switch Mobility May Shut UK Plant, Shifts Focus To India EV Market

Switch UK has stated that it will fulfill all current orders and continue providing aftermarket support for vehicles already in use. The company also plans to meet future demand in the UK and European markets from Ashok Leyland’s manufacturing facilities in India and the UAE when market conditions improve.

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Shenu Agarwal, MD & CEO, Ashok Leyland, said, “While Ashok Leyland remained committed to the UK market over the last 15 years, adoption of zero emission passenger vehicles has been tepid. This seems to be the right time to cut down losses in the UK market. On the other hand, the EV bus market in India is doing exceptionally well. Switch India is likely to achieve EBITDA breakeven in FY25, and is hoping to treble volumes in FY26, on back of 1800+ e-Bus orders in hand. In e-LCVs, within the 2-3.5T segment, the Company’s market share is at 80% plus, with prospects of 50-80% volume growth in FY26”.

While considering changes to its UK operations, Switch Mobility Automotive Ltd in India (Switch India) is preparing to expand its presence in the country’s electric vehicle market. The Indian EV sector is expected to grow significantly in the coming years, and the company aims to focus its resources on this high-growth region.

K M Balaji, Chief Financial Officer, Ashok Leyland, said, “The potential cessation of manufacturing activities is expected to mitigate the losses of UK operations. The current cash flow requirements of Switch UK will be borne out of GBP 45mn of equity infusion already approved by the Board of Ashok Leyland in February this year. Switch India is doing much better than expected and should not require significant equity infusion in near future. On an overall basis the value accretion from Switch EV business is expected to be much more than the investments made in these entities”.