Switch Mobility Limited UK, a subsidiary of Ashok Leyland, has announced plans to discontinue its manufacturing and assembly operations at its Sherburn facility in the UK. The company’s Board of Directors has initiated a consultation process with employees regarding the proposed closure.
The decision is driven by ongoing economic challenges in the UK and Europe, alongside slower-than-anticipated adoption of electric vehicles (EVs) in the public transport sector. Ashok Leyland highlighted that despite its 15-year presence in the UK market, the uptake of zero-emission passenger vehicles has remained sluggish, leading to a strategic reassessment.
“We have remained committed to the UK market for over a decade. However, given the limited adoption of zero-emission vehicles, we believe it is the right time to curtail losses,” stated Shenu Agarwal, MD & CEO of Ashok Leyland.
Despite the planned closure, Switch Mobility UK has assured that all existing orders will be fulfilled and aftermarket support will continue for its vehicles already in operation. Future demand from the UK and European markets will be met through alternative manufacturing facilities in India and the UAE when market conditions improve.
Meanwhile, the company is shifting its focus to India, where the EV market is experiencing rapid growth. Switch Mobility Automotive Ltd (Switch India) is poised to achieve EBITDA breakeven by FY25 and is targeting a threefold increase in production volumes by FY26. The Indian arm has already secured orders for over 1,800 electric buses.
K.M. Balaji, CFO of Ashok Leyland, noted that ceasing UK production would help cut operational losses. Financial requirements for Switch UK will be supported by a GBP 45 million equity infusion approved by Ashok Leyland’s board in February 2025.
Founded as Optare in 1985 and rebranded in 2020, Switch Mobility has played a crucial role in the UK’s electric bus market. The company introduced Britain’s first domestically-built electric bus, the Metrodecker EV, in 2014, and currently operates over 150 electric buses in cities like London and York.
With more than 1,000 electric vehicles deployed worldwide and over 150 million green kilometers traveled, Switch Mobility remains committed to driving the transition toward carbon-neutral transportation.
