Hindujas To Shift EV-Bus Plant To Ras Al Khaimah From UK

Switch Mobility - the EV-bus unit of India's Ashok Leyland Limited, part of the Hinduja Group - is relocating its production base for electric buses from the UK to a facility in Ras Al Khaimah.

​Switch Mobility plant in RAK represents the first confirmed, large-scale, dedicated manufacturing shift by a global EV bus company into the UAE, using it as a base for production and export.

The shift also reflects a strategic recognition of the emirate's cost-efficient manufacturing ecosystem, regional market access and ambition to serve Europe, the UK, and the GCC from the UAE.

When the company announced the closure of its Sherburn (UK) facility after months of evaluation, management said the UK plant had become economically unviable. The decision clears the path for Switch Mobility to relocate manufacturing to RAK, with an investment of under $3 million to expand the existing unit rather than build a new facility. According to the company's leadership, RAK offers both market access and a more favourable cost structure.

Ashok Leyland's existing Ras Al Khaimah facility is already well-established. The plant, launched in 2008, was set up as a $50 million state-of-the-art manufacturing unit with an annual capacity of 4,000 buses and has rolled out more than 25,500 buses to date. Over 55 per cent of parts for the RAK-made buses are sourced locally, and the facility serves fleets across the GCC and Africa.

With this strong foundation, the upgrade for EV bus production positions the UAE plant as more than just an assembly line: it becomes a regional manufacturing hub for high-voltage electric buses.

For Hinduja Group and Ashok Leyland, this realignment signifies a major step in executing their global EV strategy. Switch Mobility has already achieved a profit after tax (PAT) in the first half of its current financial year, signalling that the transition from traditional commercial vehicles to electric mobility is gaining traction. The move to RAK enables the company to cut operational expenses, streamline logistics for exports to Europe and the GCC, and tap into UAE's strong business-friendly environment.

For the UAE, the decision reinforces its ambition to become a manufacturing and export base for clean mobility. The country's industrial policy and investment promotion incentives align neatly with manufacturers seeking logistics advantage into Europe, Africa and Asia. While the UAE already has manufacturing in EV parts and related technologies, this relocation marks one of the few times a global bus-maker is shifting full production into the emirate.

Although there is no definitive claim that Switch Mobility will be the first EV bus manufacturer in the UAE, given its relocation and the RAK plant upgrade, it comes very close - or perhaps will become the first global-scale EV-bus producer based in the UAE. Local media report that the buses will begin trial runs in the UAE and Saudi Arabia in summer 2025 with commercial rollout in the GCC by Q4 2025.

Beyond manufacturing, the shift has wider implications. Supply-chain linkages from India and beyond will channel components into RAK, turning the facility into an integrated production node rather than a simple assembly line. The fact that some components will flow from India underscores the Hinduja Group's approach to regional optimisation. The move also signals to fleet operators in the GCC that EV buses from Switch Mobility can now be“made-in-UAE for the region”, strengthening confidence in local servicing, parts availability and aftermarket support.

From a strategic vantage point, this transition reflects the UAE's broader industrial pivot into sustainable mobility, advanced manufacturing and export-oriented production. For the Hinduja Group, it represents a mature step away from import-centric operations into locally grounded manufacturing with global reach. For Ashok Leyland, it consolidates its role not only as a bus manufacturer but as a global EV-bus player with production capabilities in India, the UK (until now) and soon the UAE.

In practical terms, the move means that new EV-bus models developed by Switch Mobility - such as the EiV12 and E1 platforms - can be produced closer to GCC markets, cutting shipping time, tariffs and import-cost drag. Moreover, UAE-based production raises the likelihood of winning large fleet contracts across the Gulf, especially as regional governments accelerate adoption of electric public transport vehicles.

Automobile industry experts said Hinduja Group's manufacturing relocation is actually a strategic alignment of global EV manufacturing with regional demand, cost optimisation and supply-chain rationalisation.“For the UAE, it is a tangible vote of confidence by a global vehicle manufacturer in its industrial proposition. For the Hinduja Group and Ashok Leyland, it is a leap forward in their ambition to become a major EV player.”

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