Ashok Leyland's electric-vehicle business, Switch Mobility, posted its maiden net profit in H1 of fiscal 2026, marking an important milestone in the parent company's EV transition.
Switch Mobility's turnaround has been powered by strict cost controls, manufacturing synergies with Ashok Leyland, and the strategic relocation of production from the UK to Ras Al Khaimah (RAK), UAE.
The Sherburn facility in the UK was no longer financially viable. The move to RAK, involving a modest investment, is expected to offer a lower-cost production base, plus logistical advantages for both European and GCC markets.
From a financial standpoint, Switch Mobility had already achieved EBITDA break-even in FY 25 with a double-digit margin in Q4, reinforcing the viability of its EV-bus business model.
Ashok Leyland estimates Switch India’s bus volumes to increase threefold in FY 26, with revenue expected in the range of ₹900- 1,000 crore. The company will also invest around ₹5,000 crore to establish a battery plant in India, which will be rolled out in phases, starting from pack assembly and later moving to cell production.
According to analysts, the profitability of Switch Mobility reduces its pressure on Ashok Leyland's overall earnings, thereby strengthening its EV diversification strategy.
However, the company is still exposed to execution risks and cost pressures. Although it is winding down operations at its UK plant, Switch will continue to service existing orders and support aftermarket requirements from other facilities in the UK.
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