Switch Mobility to shut Sherburn factory amid industry struggles

Switch Mobility Ltd (Switch UK), an electric vehicle subsidiary of Ashok Leyland Ltd, announced on Wednesday that it plans to shut down its manufacturing and assembly operations at its Sherburn facility, citing economic challenges in the UK’s bus manufacturing sector.

The decision comes amid ongoing economic uncertainty in the UK’s bus manufacturing sector, which has impacted the company’s ability to achieve economies of scale, according to a statement.

The Board of Directors of Switch UK has approved the commencement of the consultation process with employees regarding the closure of Sherburn operations.

Despite the potential closure, Switch UK stressed that it has no plans to exit the UK market. The company will fulfil all existing orders and continue to provide aftermarket services and support from its facilities in Rotherham and Thurrock, it added.

Switch India eyes EBITDA breakeven in FY25

Ashok Leyland announced that its subsidiary, Switch Mobility Automotive Ltd (Switch India), is on course to achieve EBITDA breakeven in FY25. The EV division plans to strengthen its presence in India’s rapidly expanding electric vehicle (EV) market, driven by a robust market outlook.

Ashok Leyland’s Managing Director & CEO, Shenu Agarwal, highlighted the company’s strategic shift, noting that despite a 15-year commitment to the UK market, the adoption of zero-emission passenger vehicles has been sluggish. “This appears to be the right time to reduce losses in the UK market. Meanwhile, the EV bus market in India is thriving,” he stated.

Switch India is likely to achieve EBITDA breakeven by FY25 and aims to triple its volumes by FY26, driven by a robust order book of over 1,800 electric buses, he said in a statement.

KM Balaji, Chief Financial Officer of Ashok Leyland, stated that the proposal to wind down UK operations aims to minimize losses. “The cash flow needs of Switch UK will be covered by the £45 million equity infusion approved by the Board in February. However, Switch India is exceeding expectations and is unlikely to require significant additional equity infusion in the near future,” he added.