Switch India Aims To Turn Profitable In Next Four To Six Quarters: Ashok Leyland CEO

Following the board's nod to begin the consultation process for the closure of Switch Mobility Ltd's Sherburn facility, the spotlight is on Switch India.

Shenu Agarwal, the chief executive officer and managing director of Ashok Leyland, said the company has been committed to the UK business for 15 years and had been loss-making.

With the consultation process with the employees, the losses being made in the UK arm should come down. Expecting a positive effect of this decision, Agarwal said that a small but profitable aftermarket service will remain for customers.

The management believes that Switch India is positioned to benefit from the growing market in India, as it is already expected to be Ebitda positive. It also aims to double light commercial vehicle volumes in the financial year 2026.

Switch India will prioritise outright sales. For Switch India, the new business will not be via gross contract nature, said Agarwal. He also believes that no major funding is required for Switch, as it can stand on its own feet without major external funding.

To facilitate the UK supply, the company is set to take the final call in the next three months about the location to manufacture e-buses. Agarwal expects no major capex, as they are looking at the expansion of an existing unit and not a new unit.

"There are new plants in India. We've been expanding our bus capacity with new plants in Andhra Pradesh and Lucknow. Capacity is there in India, the UK and the UAE right now," he said.

The net debt in the UK from Switch is to the tune of BGP 80 million, which is payable by 2029. The one-time closure of the unit cost is also set to be borne by the company over time.

This is supported by the equity infusion and the possibilities of a private or public placement later on.