Switch, formerly Optare until 2020, has announced that it is undertaking a consultation process in relation to the potential closure of its bus building facility in Sherburn-in-Elmet in North Yorkshire due to ‘economic uncertainty and ‘slower than expected adoption of electric vehicles in the UK.’ In a statement, the company, whose sales have been slow in the UK for a number of years and which recently restarted production of the Optare-badged diesel Solo for Stagecoach, said it wants to refocus its efforts on the growing Indian market where it sees greater potential.
In a statement from Switch’s parent company Ashok Leyland, the firm said the consultation process could ‘potentially lead to cessation of its manufacturing and assembly activities’ in the UK. The company, which recorded a loss of over £20m in the last financial year, currently employs aroud 200 people at the 13,000 square metre site, which opened in 2011.
Ashok Leyland Managing Director and CEO Shenu Agarwal said in a statement: “While Ashok Leyland remained committed to the UK market over the last 15 years, adoption of zero-emission passenger vehicles has been tepid. This seems to be the right time to cut down losses in the UK market. On the other hand, the EV bus market in India is doing exceptionally well. Switch India is likely to achieve EBITDA breakeven in FY25, and is hoping to treble volumes in FY26, on the back of 1800+ e-Bus orders in hand.”
CFO K. M. Balaji added: “Switch India is doing much better than expected and should not require significant equity infusion in near future. On an overall basis the value accretion from Switch EV business is expected to be much more than the investments made in these entities.”
The company adds that it will complete all existing orders and provide support for existing vehicles, and could return to the UK and Europe once the market recovers, but with vehicles produced at its factories in India and the UAE.
