Shares of Ashok Leyland are likely to come under pressure in trade tomorrow, March 27 after the company disclosed the potential shutdown of its UK-based electric vehicle subsidiary’s manufacturing unit. In an exchange filing on March 26, 2025, Ashok Leyland announced that Switch Mobility UK, a step-down subsidiary, has commenced employee consultations that may lead to the closure of its manufacturing and assembly operations at its Sherburn facility.
The development comes amid a broader economic slowdown in Europe and persistent challenges in the electric vehicle (EV) manufacturing ecosystem. The company cited “continuing general economic uncertainty within the overall bus manufacturing sector in the UK” and the “inability to derive the benefits of scale” as the key reasons behind the move.
While the company confirmed that there are no plans to exit the UK market altogether, it acknowledged the likelihood of shutting down the Sherburn operations. Switch Mobility UK will continue to fulfill all existing orders and provide aftermarket services from two other facilities located in Rotherham and Thurrock.
