Switch Mobility, the electric vehicle arm of Ashok Leyland, is targeting to double its fleet to around 10,000 vehicles over the next two years, as it scales up global operations and transitions towards a more self-sustained operating model.
The EV arm of Ashok Leyland currently has over 5,000 electric vehicles on the road and is expecting an order book estimated at around ₹1,500 crore, providing medium-term revenue visibility.
A key pillar of its next phase of growth is international expansion, anchored by a new manufacturing plant in Ras Al Khaimah (UAE) facility, which has the total capacity to produce up to 10,000 buses annually for the overall group and serve markets across the GCC, Africa and Europe.
Analysts say Switch has entered a new phase, having achieved EBITDA and PAT breakeven in FY26 and now moving towards self-sustained growth, with parent Ashok Leyland expected to take a more calibrated approach to capital allocation after investing over ₹1,200 crore.
In a conversation with businessline, Ganesh Mani, CEO of Switch Mobility, spoke about growth, global strategy and the shift from a sales-led to an operations-led EV business and also factors in the rising cost pressures from batteries, commodities and supply chain disruptions which the auto industry and electric bus OEMs are facing.
Edited Excerpts:
Switch has scaled sharply. What is the next milestone?
We have grown from around 444 buses last year to over 1,200 this year. Overall, we now have more than 5,000 vehicles on the road, with a 23% market share in electric buses and over 40% in LCVs in the 2-3.5 tonne category.
From here, our ambition is to double. Our larger goal is to move towards around 10,000 vehicles over the next two years is the broad direction we are working on depending on how the market evolves.
You’ve begun exports. What scale are you seeing internationally?
We have already exported about 100 buses to Mauritius. In addition, we have a further pipeline of around 100 units across markets such as Seychelles, Bhutan, and Nepal. These are evolving markets, and volumes will build gradually.
How does the UAE facility shape your global strategy?
Exports are becoming a key pillar. The Ras Al Khaimah facility will cater to GCC, Africa, and European markets, helping us be closer to customers and improve cost efficiency. It also helps us diversify beyond India and reduce dependence on a single market.
The majority of your bus contracts are on a GCC basis and have a 12-year operating model. What changes in execution?
In this business, the sale is just the beginning. We are managing a long lifecycle. We work with fleet operators for day-to-day execution, while we focus on vehicle performance and uptime. All our vehicles are connected and monitored through a central command centre, processing around 12 million data points annually. This allows us to maintain about 98% uptime, which builds customer confidence.
Costs across the industry are said to be rising by 20–30%. How are you seeing this?
There are multiple pressures, battery costs, commodity prices like steel, foreign exchange movements and supply chain disruptions. These challenges affect the entire industry, and EVs are more sensitive. We are working on internal efficiencies, but these factors will have to be considered while bidding for new tenders.
What is your capex plan for FY27, especially given Ashok Leyland has already invested over ₹1,200 crore into the business?
We are currently self-sufficient and able to manage our growth with the existing business. As we expand into new products and markets, we will evaluate capital requirements, but at this stage, we are able to sustain our growth.
As COO of Ashok Leyland, what is the outlook for FY27?
FY26 was a strong year for us. For FY27, the industry is undergoing a phase of recalibration, so we cannot comment on it at this time. Our focus remains on staying agile and executing well in a dynamic environment.