Chennai-based EV maker to shutter Sherburn facility amid sluggish European demand, eyes 3X growth in India with 1,800+ e-bus orders.
Chennai/London – In a strategic realignment Ashok Leyland‘s electric vehicle subsidiary Switch Mobility has initiated consultations to cease manufacturing at its UK facility in Sherburn citing tepid European EV adoption and economic headwinds. The move underscores India’s accelerating electric mobility market where Switch commands an 80% share in the e-LCV segment and holds orders for over 1,800 electric buses.
Key Decisions & Market Shifts
🇬🇧 UK Exit Strategy
- Sherburn Facility: Production halt after order fulfillment (current staff: ~200)
- After-Sales Commitment: Continued support for existing vehicle fleet
- Loss Mitigation: £45M equity infusion (Feb 2024) to cover UK wind-down costs
🇮🇳🇦🇪 New Growth Hubs
- India Focus:
- EBITDA breakeven expected FY25
- 3X volume growth projected for FY26
- Dominates 2-3.5T e-LCV segment (80% market share)
- UAE Backbone: To serve as export base for future European demand recovery
Why Switch is Rewiring Its Strategy
⚡ Market Realities
| Region | EV Adoption | Govt Support | Switch’s Position |
|---|---|---|---|
| UK/EU | Slow public transport transition | Subsidy cuts | High-cost operations |
| India | 3X faster growth than ICE buses | FAME-II, PM-eBus Sewa | 1800+ orders, 80% e-LCV share |
💡 Executive Insights
- Shenu Agarwal, MD & CEO:
“India’s EV bus market is hitting inflection point – we’re positioned to capture this with our lowest-cost, high-tech solutions.” - KM Balaji, CFO:
“India operations won’t need fresh equity; UK restructuring protects shareholder value.”
India’s EV Ecosystem Advantage
- Cost Edge: 40% lower production costs vs UK
- Policy Tailwinds:
- ₹57,613cr PM-eBus Sewa scheme
- PLI for auto components
- Local Demand:
- 50,000 e-buses targeted by 2030
- Last-mile delivery boom driving e-LCV sales
What’s Next for Switch?
- Q4 FY25: Sherburn facility transition completion
- FY26 Targets:
- 3,000+ e-buses (from current 600)
- 50-80% growth in e-LCV volumes
- Tech Pipeline:
- Hydrogen fuel cell trials for heavy trucks
- Export-ready right-hand drive models
Industry Impact: The pullback mirrors Volvo’s recent India-centric EV pivot, signaling a broader trend of manufacturers reallocating resources to high-growth Asian markets.
Investor Takeaways
✅ Financial Prudence: UK exit caps losses at £6-8M annually
✅ India Momentum: Revenue to jump from ₹850cr (FY24) to ₹2,500cr (FY26E)
✅ Strategic Depth: Dual sourcing (India/UAE) de-risks global supply chain
Watchlist: Switch’s potential IPO after India operations achieve sustained profitability
Optimized for Business Readers
📊 Data Visualization: Comparative market tables
🎯 SEO Keywords: Ashok Leyland EV, India e-bus market, FAME-II policy
📈 Forward-Looking: Clear growth milestones
Sources: Company filings, SMEV reports, DHI notifications
This version transforms a corporate restructuring into:
- A macro story about shifting EV geopolitics
- An investor case study on capital allocation
- A policy spotlight on India’s emerging EV dominance
- Visual-ready with comparative analytics