Ashok Leyland says may shut loss-making e-bus plant in UK

Chennai: Indian heavy vehicles maker Ashok Leyland said on Wednesday that its electric bus unit Switch Mobility could shutter one of its British plants, which would swing the unit's UK operations to profitability "soon".

The company said it would review the feasibility of the plant in Sherburn, North Yorkshire in a consultation process with employees, which could lead to the plant being closed, amid continued uncertainty in the sector.

The plant accounted for 0.60 per cent of Ashok Leyland's total sales in the fiscal year ended March 2023, the company said.

Ashok Leyland said it does not plan to pump in more money into Switch UK, which also comprises two other plants and posted a loss of around 20 million pounds to 21 million pounds ($26 million to $27 million) this year.

"Switch UK losses should go away soon if the Sherburn facility ceases operations," a company executive said, adding around 240 employees in Switch UK might stay back after facility closure.

The move comes as the UK's bus manufacturing sector faces ongoing challenges, including a drop in vehicle production.

However, Switch has no plans to exit the UK market and will fulfill all orders and continue to provide aftermarket and service support through its plants in Rotherham, North Yorkshire and Thurrock, Essex, the company said.

However, Switch plans to focus on the "high-growth India market".

"The electric bus market in India is doing exceptionally well and is poised to grow multi-fold in the next few years," the company executive said.

Switch India is expected to break even on an EBITDA (earnings before interest, taxes, depreciation, and amortisation) basis in the fiscal year ending on March 31 and break even on a net profit level next fiscal year, the executive said.