Switch Mobility UK Considers Halting Production

Ashok Leyland subsidiary Switch Mobility UK is evaluating the cessation of production at its Sherburn UK facility, attributing the move to sluggish sales. The company aims to intensify its focus on the Indian market, where it has been performing exceptionally well.

Strategic Shift Towards India and UAE

Switch plans to leverage its manufacturing sites in India and the UAE to cater to the UK and European markets in the future. This strategic shift is expected to mitigate losses in its UK operations.

Commitment to UK Market Despite Challenges

Shenu Agarwal, MD & CEO of Ashok Leyland, expressed the company's long-term commitment to the UK market but noted the slow adoption of zero-emission passenger vehicles as a significant challenge.

Positive Outlook for Indian EV Market

The EV bus market in India shows promising growth, with Switch India anticipated to achieve EBITDA breakeven in FY25 and a significant volume increase in FY26.

Financial Adjustments and Future Prospects

K M Balaji, CFO of Ashok Leyland, highlighted the financial strategies to support Switch UK's operations and the optimistic outlook for the Switch EV business's value accretion.