In response to ongoing economic challenges in the UK and Europe, coupled with slower-than-expected adoption of electric vehicles (EVs) in public transport, Switch Mobility Limited UK (Switch UK) has announced plans to potentially cease manufacturing and assembly operations at its Sherburn facility. The decision was approved by the Board of Directors of Switch UK, marking a strategic shift in the company’s global operations.
While Switch UK will fulfill all existing orders and continue to provide aftermarket support, future demand from the UK and European markets will be met through Ashok Leyland’s manufacturing sites in India and the UAE once market conditions improve.
At the same time, Switch Mobility Automotive Ltd, India (Switch India) is accelerating its expansion in the high-growth Indian EV market, which is poised for significant expansion in the coming years.
Ashok Leyland MD & CEO, Shenu Agarwal, acknowledged the tough decision, stating, “While Ashok Leyland has been committed to the UK market for the last 15 years, the slow adoption of zero-emission passenger vehicles has impacted business viability. This is the right time to cut losses in the UK. Meanwhile, India’s EV bus market is thriving, and Switch India is on track to achieve EBITDA breakeven in FY25 and triple its volumes in FY26, backed by 1,800+ e-Bus orders.”
In the e-Light Commercial Vehicle (e-LCV) segment (2-3.5T), Switch India currently holds an 80%+ market share, with projected 50-80% volume growth in FY26.
K M Balaji, CFO of Ashok Leyland, added that the potential closure of UK manufacturing operations would help mitigate losses. The company has already approved a GBP 45 million equity infusion in February 2025 to support Switch UK’s cash flow requirements. However, with Switch India performing beyond expectations, it is unlikely to require additional equity infusion in the near future.
Despite scaling back UK operations, Ashok Leyland remains confident that its overall investment in the Switch EV business will generate greater value than initially projected, reinforcing its commitment to the fast-growing global EV sector.
