Switch Mobility Limited UK (Switch UK) has commenced a consultation process with its employees regarding a potential cessation of manufacturing and assembly operations at its Sherburn facility.
The company attributes the consideration to ongoing economic uncertainty in the UK and Europe, alongside slower-than-anticipated adoption of electric vehicles (EVs) in public transport.
Parent company, Ashok Leyland, has confirmed that Switch UK will fulfil all existing orders and continue providing aftermarket support for vehicles already in operation. Future demand from the UK and European markets will be met through Ashok Leyland’s alternative manufacturing sites in India and the United Arab Emirates.
In contrast to activity in the UK, Switch Mobility Automotive Ltd, India (Switch India) is set to expand its presence in the Indian EV sector, which is projected to see significant growth in the coming years.
Shenu Agarwal, Managing Director and CEO of 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.
The consultation process with UK employees will determine the next steps regarding the Sherburn facility. Meanwhile, Switch India continues its focus on capitalising on the expanding Indian EV market.
