Monday, March 31, 2025

Ashok Leyland considers closing UK electric bus plant to cut losses

Ashok Leyland’s electric bus subsidiary, Switch Mobility, is reviewing the future of its Sherburn, North Yorkshire plant as part of a consultation process that could lead to its closure. The move aims to turn Switch UK’s operations profitable amid ongoing challenges in the UK bus manufacturing sector.

The Sherburn facility contributed just 0.6% of Ashok Leyland’s total sales for the fiscal year ending March 2023. The company has stated it will not invest additional funds into Switch UK, which lost £20–21 million this year. If the plant closes, around 240 employees may remain with the company.

Despite the potential closure, Switch Mobility will continue UK operations through its Rotherham, North Yorkshire, and Thurrock, Essex plants, fulfilling existing orders and providing aftermarket services. The company is shifting focus to India’s growing electric bus market, which expects to break even on an EBITDA basis by March 2025 and achieve net profitability the following year.

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