Switch Mobility, the electric bus division of India’s Ashok Leyland Limited under the Hinduja Group, is moving its electric bus production from the UK to Ras Al Khaimah.
This new plant in Ras Al Khaimah marks the first major manufacturing relocation by a global EV bus company to the UAE, using it as a production and export hub.
This move highlights the emirate’s efficient manufacturing environment, strategic market access, and its role as a base for serving Europe, the UK, and the GCC.
Following an evaluation period, Switch Mobility announced the closure of its Sherburn (UK) facility due to economic challenges, paving the way for relocation to Ras Al Khaimah with an investment under $3 million to expand the existing site rather than build anew. Company leaders emphasize RAK’s advantageous market access and cost benefits.
Ashok Leyland’s Ras Al Khaimah plant, operational since 2008 with a $50 million investment, boasts an annual capacity of 4,000 buses, having produced over 25,500 units. Over 55% of bus parts are sourced locally, supporting fleets in the GCC and Africa.
Enhancing this base for EV production transforms the UAE facility into a regional hub for high-voltage electric buses.
For the Hinduja Group and Ashok Leyland, this shift is pivotal in advancing their global EV strategy. Switch Mobility reported a profit after tax in the first half of the current fiscal year, indicating a shift from traditional vehicles to electric is underway. The RAK move reduces operational costs, streamlines export logistics to Europe and the GCC, and capitalizes on the UAE’s business-friendly climate.
This decision aligns with the UAE’s vision to be a clean mobility manufacturing and export base, supported by its industrial policy and investment incentives, offering logistics advantages to Europe, Africa, and Asia. While the UAE has established EV parts manufacturing, this marks one of the first full production relocations by a global bus maker to the emirate.
Switch Mobility might become the UAE’s first large-scale EV bus producer following the RAK upgrade. Local reports suggest trial runs in the UAE and Saudi Arabia by summer 2025, with a GCC commercial rollout by Q4 2025.
The relocation extends beyond manufacturing, integrating supply chains from India and beyond, establishing RAK as a comprehensive production node. India’s component supply highlights Hinduja Group’s regional optimization strategy, assuring GCC fleet operators of “made-in-UAE” EV buses with local servicing, parts, and support.
This transition underscores the UAE’s industrial shift towards sustainable mobility and advanced manufacturing. For the Hinduja Group, it signifies a transformation from import-focused operations to localized manufacturing with global outreach. Ashok Leyland strengthens its position as a global EV bus manufacturer with facilities in India, the UK (historically), and soon the UAE.
Practically, producing new EV bus models like EiV12 and E1 platforms closer to GCC markets cuts shipping time, tariffs, and import costs. UAE-based production boosts chances for large Gulf fleet contracts as regional governments push for electric public transport.
Industry experts regard Hinduja Group’s move as aligning global EV manufacturing with regional demand, cost efficiency, and supply-chain optimization. “For the UAE, it represents a strong endorsement by a global vehicle manufacturer of its industrial capabilities. For the Hinduja Group and Ashok Leyland, it’s a significant stride towards becoming a major EV player.”
