Ashok Leyland's Strategic Shift: Navigating Economic Uncertainty by Restructuring UK Operations

Ashok Leyland's subsidiary, Switch Mobility Ltd, may cease manufacturing at its Sherburn facility, affecting up to 200 jobs, due to economic challenges in the UK bus sector. The company will continue aftermarket services and consider shifting production to alternative sites, such as India or the UAE.

In a strategic move influenced by ongoing economic challenges, Ashok Leyland announced plans to potentially halt manufacturing operations at its UK-based Sherburn facility.

This decision, which could affect up to 200 employees, is part of a broader effort to re-evaluate the company's operations amid the uncertainty in the UK bus manufacturing sector. While manufacturing at Sherburn may cease, Ashok Leyland is committed to maintaining aftermarket services through other facilities in Rotherham and Thurrock.

The company is exploring alternative production sites outside the UK, possibly in India or the UAE, as it seeks to remain competitive. Meanwhile, the focus is on expanding in the high-growth Indian market and reducing losses in the UK, with a possibility of resuming UK operations if economic conditions improve.

(With inputs from agencies.)