In a strategic pivot to streamline operations and cut costs, Switch Mobility—the electric vehicle (EV) subsidiary of Ashok Leyland and part of the Hinduja Group—has relocated its UK manufacturing activities to its facility in Ras Al Khaimah (RAK), United Arab Emirates. The move, reported by The Times of India, underscores the company’s focus on optimizing its global footprint amid evolving market dynamics in the EV sector.
The decision comes after Switch Mobility deemed its Sherburn facility in the UK unsustainable. “A few months ago, we decided to shut down Switch’s Sherburn, UK, facility as operating there was no longer viable,” said Shenu Agarwal, Managing Director and CEO of Ashok Leyland. “We have since shifted the manufacturing of Switch buses to our RAK plant in the UAE, where we are investing under $3 million to produce buses for the UK and European markets. RAK offers better market access to Europe and the GCC, along with a more efficient cost structure.”This relocation is expected to bolster Switch Mobility’s competitiveness in international markets, particularly the burgeoning electric bus segment. Agarwal emphasized that while the company’s Indian operations remain robust, the restructuring will enhance its global positioning. Switch India, in particular, has shown resilience, achieving profit-after-tax (PAT) positivity in the first half of FY26 (April-September 2025). This turnaround was fueled by robust domestic sales volumes and stringent cost management measures, as noted by CFO K.M. Balasubramanian.
Unlike standalone EV players that rely on dedicated production lines, Switch Mobility benefits from synergies with parent company Ashok Leyland’s established infrastructure. The firm specializes in producing “glider vehicle shells”—chassis without batteries or powertrains—which are then customized for EV applications. This lean approach has helped secure a healthy order book of 1,500 electric buses, signaling strong demand ahead.
Expanding Horizons: Lucknow Plant and Battery JV on the Horizon
Switch Mobility’s ambitions extend beyond relocation. Construction of Ashok Leyland’s dedicated e-bus manufacturing plant in Lucknow, Uttar Pradesh, is nearing completion, poised to ramp up domestic production capacity. In parallel, the company is scouting prime locations for a high-stakes battery manufacturing joint venture with China’s Contemporary Amperex Technology Co. Limited (CATL)—though initial reports mentioned CALB Group, sources confirm alignment with broader battery partnerships. Agarwal indicated that a final site selection is anticipated within the next 30 to 60 days, potentially unlocking localized supply chains and reducing import dependencies.
These developments come against a backdrop of stellar financial performance for Ashok Leyland. In Q2 FY26 (July-September 2025), the company posted its highest-ever consolidated PAT of ₹820 crore, a 7% increase from ₹767 crore in the same quarter last year. Buoyed by this momentum, the board has recommended an interim dividend of ₹1 per share (at 100% on face value), rewarding shareholders amid expansion plans.
As the global shift toward sustainable mobility accelerates, Switch Mobility’s adaptive strategies position Ashok Leyland as a frontrunner in India’s EV ecosystem. With cost-effective production in the UAE, a fortified order pipeline, and upcoming facilities in India, the group is gearing up to electrify more roads—both at home and abroad. Investors and industry watchers will be keen to track the battery JV’s rollout, which could prove pivotal in scaling EV adoption.
