Switch Mobility Achieves Profitability Amid India’s E-Bus Surge

Ashok Leyland’s electric-vehicle subsidiary, Switch Mobility, has quietly reached a milestone that many global competitors are still chasing: profitability in electric buses. With India’s e-bus market heating up, the company’s recent financial and operational updates suggest it may be carving a strategic advantage.

Positive Earnings Signal Turnaround

In the latest quarterly statement, Ashok Leyland Executive Chairman Dheeraj Hinduja highlighted Switch Mobility’s growing strength, noting that the unit “has a healthy order book and a well-defined product roadmap.” The company has begun delivering buses to international markets and has already achieved positive EBITDA and net profit in the first nine months of the fiscal year.

This represents a remarkable turnaround. Just two years ago, Switch Mobility required investor patience as it worked toward profitability. By mid-2025, executives reported that the EV subsidiary was on track to achieve EBITDA break-even, signaling the end of cash burn. Further updates in May 2025 confirmed a “strong double-digit EBITDA margin,” with the company aiming for full net-level breakeven in the current fiscal year. The subsidiary currently holds an order book exceeding 1,800 electric buses.

Leveraging Ashok Leyland’s Market Strength

Ashok Leyland’s stronghold in the traditional bus and truck segment is a key driver of Switch Mobility’s growth. The company controls roughly 40% of India’s bus market, giving it a significant platform to accelerate electrification. By combining an established distribution network with Switch Mobility’s innovative e-bus offerings, Ashok Leyland is positioning itself to compete aggressively in both domestic and international markets.

Building a Moat in a Competitive Landscape

The e-bus market in India is intensely competitive, with large contracts and thin margins creating a challenging environment for new players. Switch Mobility’s early profitability raises questions about whether the company has found a sustainable edge or if its gains are temporary. The combination of a solid order book, international deliveries, and financial discipline suggests the company could build a durable moat in this space, differentiating itself from competitors still navigating the path to profitability.

Looking Ahead

As India accelerates its transition toward electric public transportation, Switch Mobility’s performance will be closely watched. With early profits and a strategic parent company backing its growth, the unit could set new benchmarks for the e-bus segment in the country. The coming months will reveal whether this success is an isolated achievement or the beginning of a lasting competitive advantage in India’s fast-evolving electric bus market.