Switch Mobility is considering to halt manufacturing and assembly activities in UK
Switch Mobility is considering to halt manufacturing and assembly activities in UK (Sherburn). The Board of Directors of parent company Ashok Leyland has indeed “approved commencement of consultation process with the employees which could potentially lead” to such decision. At least 200 jobs would at risk from the potential closures, trade agency electrive notes. The […]
Switch Mobility is considering to halt manufacturing and assembly activities in UK (Sherburn). The Board of Directors of parent company Ashok Leyland has indeed “approved commencement of consultation process with the employees which could potentially lead” to such decision. At least 200 jobs would at risk from the potential closures, trade agency electrive notes.
The reason is attributed to “continuing general economic uncertainty faced in both the UK and Europe, and slower than expected transition to EVs in public transport”, Ashok Leyland states in a press note.
At the same time, Switch India “is planning to double-down on the high-growth India EV market, which is poised to grow multi- fold in the next few years”. In India the company achieved a leading position delivering 213 e-bus units in the first two months of 2025, which translates to a 31.9% share. A major delivery for up to 500 units will be executed in Chennai. As of end 2024, Switch launched (again) EiV12 and E1 electric city bus models, respectively headed to India and Europe
Switch Mobility might close UK facility
Around the year 2022, Switch looked quite focusing on the European market. After having unveiled, at European Mobility Expo 2022 in Paris, its e1 electric bus model for the European market, Switch Mobility had launched its electric bus platform SWITCH EiV 12 for the Indian market (the two models have the EV architecture in common). The Switch e1 was supposed to be manufactured at a company’s new manufacturing and technical centre in Valladolid, Spain. A massive £300 million investment plan in the UK and India was planned at that time. The Spanish facility has never been built. And in late 2022 the (former) company’s Chief Marketing & Sustainability Officer, Peter Freedman stated to Sustainable Bus that “it’s not been an easy year for the manufacturers. Volumes have been low in UK, but fortunately we’ve been able to balance the books with progress in India”.
Switch UK underlines that it will execute and complete all the orders on hand and will continue to provide aftermarket support for the existing vehicle fleet. The plan is to cater to the UK and Europe markets when market recovers, from Ashok Leyland’s alternate manufacturing sites in India and UAE.
Shenu Agarwal, MD and 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”.
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”.
