Ashok Leyland has announced that its UK-based stepdown subsidiary, Switch Mobility Limited, has initiated a consultation process with employees regarding the future and to potentially cease manufacturing and assembly operations at the Sherburn facility. This move comes amid continued economic uncertainty across the broader UK manufacturing sector and the company’s inability to achieve desired economies of scale.
According to an exchange filing dated March 26, 2025, the consultation may potentially lead to the cessation of manufacturing at Sherburn, though Switch Mobility does not plan to exit the UK market entirely. Instead, the company will continue to fulfill existing orders and maintain service support through its Rotherham and Thurrock sites.
Switch UK’s operations contributed only 0.60% to Ashok Leyland’s consolidated turnover in the last financial year, minimizing the material financial impact of the potential closure. However, the exact timeline for closure remains uncertain as it is subject to internal and external approvals.
Meanwhile, Ashok Leyland also addressed speculation surrounding its interest in acquiring a stake in SML Isuzu. In a clarification, the company stated that it denies all reports and that it is factually incorrect about any stake acquisition in SML Isuzu. The clarification follows market buzz that the Hinduja Group-backed commercial vehicle giant was eyeing a significant stake in the Japanese-Indian joint venture.
Switch Mobility was established to lead Ashok Leyland’s global EV strategy and has presence across the UK and Europe. Despite operational challenges, Ashok Leyland remains committed to its EV ambitions and will continue to support Switch’s aftermarket services and customer base.
