Shenu Agarwal, Managing Director and CEO of Ashok Leyland, confirmed the decision, noting that conditions in the UK were no longer sustainable for Switch Mobility’s current operational model. “A few months ago, we decided to shut down Switch’s Sherburn, UK, facility as operating there was no longer viable. 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,” Agarwal said. “RAK offers better market access to Europe and the GCC, along with a more efficient cost structure.”
The relocation is part of a broader realignment designed to boost Switch Mobility’s performance in global markets, particularly in electric buses — a segment where demand and competition continue to intensify. Agarwal added that while operations in India remain strong, the restructuring is expected to enhance the company’s global competitiveness.
Switch India has delivered a solid performance in the first half of FY26, turning PAT-positive. CFO K. M. Balaji attributed the improvement to tighter cost control and strong domestic sales volumes. Unlike many EV manufacturers operating standalone factories, Switch benefits from Ashok Leyland’s extensive manufacturing infrastructure, producing “gliders” — vehicle shells without batteries or powertrains — across integrated facilities.
The company currently holds an order book of approximately 1,500 electric buses, underscoring rising demand for zero-emission public transport solutions. Ashok Leyland is also nearing completion of its new e-bus-focused facility in Lucknow, designed to further support growth in India’s expanding electric mobility sector.
In parallel, the company is advancing its battery manufacturing joint venture with China’s CALB Group. Agarwal confirmed that site evaluations are ongoing and that a final location is expected to be selected within 30 to 60 days. This JV is seen as a critical step for strengthening vertical integration and supporting long-term EV production goals.
Ashok Leyland also reported strong financial results, posting its highest-ever consolidated profit after tax of Rs 820 crore for Q2 FY26, up from Rs 767 crore in the previous year. The company’s board has approved a 100 percent interim dividend of Re 1 per share, reinforcing confidence in its growth trajectory.
Switch Mobility’s decision to consolidate manufacturing in the UAE highlights the country’s growing importance as a strategic hub for electric vehicle production and export. With competitive logistics, favourable regulatory conditions, and strong regional demand for sustainable transport, the UAE is increasingly becoming a destination for global EV players seeking operational efficiency and wider market reach.
The momentum behind moves like Switch Mobility’s relocation aligns with the wider transformation of the mobility sector — a transformation that will take centre stage at the 5th Edition of EVIS Abu Dhabi co-located with EcoMobility Global (EMG), taking place on 13–14 October 2026 at ADNEC Centre Abu Dhabi.
As two of the Middle East’s most influential mobility platforms, EVIS and EMG convene global automotive leaders, innovators, policymakers and investors to explore the future of electrification, clean energy, advanced transport systems and sustainable mobility ecosystems.
The shift toward UAE-based EV manufacturing, expanding regional supply chains and the accelerating adoption of clean transport solutions are among the trends shaping the discussions at EVIS and EMG — where the industry connects, collaborates and defines what comes next for mobility worldwide.
Source: Leyland’s EV arm to shift plant from UK to UAE – The Times of India
