Switch Mobility UK likely to cease operations at Sherburn facility

Ashok Leyland on Wednesday, March 26, said its UK subsidiary Switch Mobility would close manufacturing and assembly activity at the Sherburn facility amid continuing general economic uncertainty within the overall bus manufacturing sector in the UK and the consequent inability to derive the benefits of scale.

Switch Mobility Limited, UK (Switch UK) is a step-down subsidiary of Ashok Leyland. It manufactures electric buses across the UK & Europe.

However, the company noted that Switch UK has no plans to exit the UK market. It will execute and complete all the orders on hand and will continue to provide aftermarket and service support from two other facilities in Rotherham and Thurrock for the existing vehicle parc.

In a separate filing, Ashok Leyland refuted reports stating that it might be close to acquiring the promoter's stake in SML Isuzu. "The company would like to outrightly deny this news as factually incorrect," Ashok Leyland said.

Shares of Ashok Leyland on Wednesday settled at ₹214.40 apiece, gaining 2.08%.

Ashok Leyland is the flagship company of the Hinduja Group. It is the second largest manufacturer of commercial vehicles in India, the fourth largest manufacturer of buses in the world, and the 19th largest manufacturer of trucks.

Headquartered in Chennai, nine manufacturing plants give an international footprint – 7 in India, a bus manufacturing facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom, and a joint venture with the Alteams Group for the manufacture of high-pressure die-casting extruded aluminium components for the automotive and telecommunications sectors. Ashok Leyland has a well-diversified portfolio across the automobile industry, the company's website adds.