Ashok Leyland Rides High on EV Wave as its electric dream gains real momentum! The iconic commercial vehicle giant is now steering into a profitable future with its EV arm, Switch Mobility, turning a corner in the first half of FY26. This milestone not only highlights the company’s bold transition toward clean mobility but also hints at a larger revolution brewing in India’s electric vehicle landscape. So, what’s fueling this remarkable turnaround? Let’s dive deeper into the electrifying story!
Switch Mobility’s Profitability and Expansion Plans
Switch Mobility’s profitability has been driven by shared manufacturing, cost optimization, and operational synergies with its parent company, Ashok Leyland. Originally formed after the acquisition and rebranding of UK-based Optare Plc in 2020, Switch Mobility is now realigning its global operations for better efficiency.
To further enhance competitiveness, Ashok Leyland plans to shift Switch Mobility’s bus manufacturing operations from the UK to the UAE. The relocation, estimated to cost under $3 million, will enable the company to cater more effectively to both the Gulf Cooperation Council (GCC) and European markets from its new Ras Al Khaimah facility. “We have not vacated the UK or European markets — we’ve only shifted our production base to optimize cost and logistics,” said Shenu Agarwal, Managing Director and CEO of Ashok Leyland.
Battery Manufacturing and R&D Initiatives
Taking its EV push further, Ashok Leyland is setting up a dedicated EV battery manufacturing plant as part of its plan to establish an EV Centre of Excellence. The ₹5,000 crore project will be implemented in two phases — starting with battery pack assembly and later expanding into cell manufacturing. The company is currently in discussions with multiple state governments and aims to finalize the plant’s location by December-end or early January.
On the technology front, the company is also working on battery swapping and fast-charging infrastructure, including pilot projects with 1 MW high-power chargers designed for heavy-duty commercial EVs. According to Agarwal, the company’s focus remains on long-term technological self-reliance, despite short-term geopolitical challenges.
Broader Outlook and Diversified Growth
Ashok Leyland’s upcoming Lucknow greenfield plant will soon begin production of CNG, electric, and diesel vehicles, adding to its manufacturing capabilities. Beyond EVs, the company expects significant growth in its defence business, with manufacturing capacities already booked for the next two years.
With the recent GST cut and a strong government capex push, Ashok Leyland anticipates robust demand across segments. The company aims to close FY26 with stronger numbers, bolstered by new product launches, including biofuel-based variants, reflecting its balanced and forward-looking growth strategy.
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