Switch Mobility Aims To Double Electric Bus Sales Every Year Until 2028

Switch Mobility Ltd. aims to double electric bus sales every year until the turn of this decade with an endeavour to be the number one player in whichever geography it is in.

“Last year to this year, we’ll be doubling our sales. And we’ll be doing so for the next three years,” Mahesh Babu, the chief executive officer of Ashok Leyland Ltd.’s EV unit, told NDTV Profit during an interview on Wednesday. “At least in the next 3-5 years, we’ll be among the top three electric bus makers in India; the ultimate goal is to be No. 1.”

A lot, then, rides on the two new electric buses launched last week.

On Dec. 11, Switch Mobility launched the SWITCH EiV12—a low-floor electric city bus for India—and the SWITCH E1 for exports to Europe. The company has already received more than 1,800 orders for the EiV12, and a thousand more are likely in the coming weeks, Babu said. Deliveries to Delhi, Bengaluru, and Chennai are likely to begin soon. Meanwhile, two units of the SWITCH E1 are bound for shipment to Italy.

While Switch Mobility has always been export-orientated—more than 250 electric buses are now on UK roads—Babu sees India overtaking Europe in mass electric mobility in the next couple of years.

The India electric city bus market is expected to grow at a compounded annual growth rate of 21% by 2030 with an EV penetration of 70%, according to Switch Mobility. The total park for electric city buses is likely to cross 70,000 units by 2030. Granted, penetration was just 3.5% in 2023 and 4.5% in 2024, but nearly 20% of all state transport buses are now battery operated.

“The India growth story is much faster than that of Europe right now,” Babu said. “Over 3,700 electric buses were sold in India in 2023. That’s expected to rise to 6,000 units in 2024. The size of Europe’s electric bus market was 7,000 units last year.”

But where does Switch Mobility fit into that picture?

“We aspire to be among the top 3 electric-bus makers by the end of this decade. The ultimate goal is to be No. 1 in whichever geography we are in.”

To that end, Babu sees the PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-Drive scheme, as crucial to the adoption of electric buses in India.

A total of Rs 4,391 crore is allocated for the procurement of 14,028 electric buses by state transport undertakings. These buses will be managed by the government’s Convergence Energy Services Ltd. in nine cities with a population of more than 40 lakh.

“We are expecting the tender from CESL in the next couple of months,” Babu said. “And we are prepped to qualify for a subsidy under the PM E-Drive scheme.”

Switch Mobility has achieved 65% localisation in its electric buses, courtesy of the platform sharing with Ashok Leyland. The company makes its own motors and battery packs; only cells are imported. Localisation can rise to more than 90% once cells start getting made locally under the production-linked incentive scheme for advanced chemistry cells, Babu said. Switch Mobility is scouting for local partners to make cells, he said.

Apart from platform-sharing, Switch Mobility is making the most of Ashok Leyland’s CV knowhow. At least 40 dealerships of the Hinduja Group company now retail electric buses made by the Chennai-based EV maker. 

“We leverage a lot with Ashok Leyland’s capabilities, particularly manufacturing, and also on network because we need spares and service throughout the country,” Babu said. “Hinduja Renewables supports our charging needs. We are also in talks with Gulf Oil for chargers.”

On Wednesday, Ashok Leyland shares fell 3.38% to Rs 222.80 apiece on the BSE even as the benchmark Sensex ended the day 0.62% lower at 80,182.20 points. Switch Mobility is yet unlisted.